To Donnie, Richard and Bernie...
Clearly everyone has the undeniable right to short FRX if they want. I might even lend you my shares (I might then call them back on you later, without warning you). What is also clear here is that you fellas don't seem to understand the company or its business model. Yes, it has certainly struggled to this point and may well disappoint for another quarter. However, they are indeed a "ongoing" concern and no uninformed person's falsehood will show otherwise. Software co.'s accounting is rift with variables and FRX had to adhere to a more conservative form of revenue recognition inorder to set the stage for a US listing. The Y2k biz is most definitively headed towards automated solutions (A FRX niche) and the system analysis co.'s ,(EDS,Cyber,etc...) are teaming up nicely with FRX for the package solution. Granted FRX has been slow to report new contracts (not due to the lack of them...as they are getting the code test contracts...but due to the timing of a listing and the avoidance of rev. recognition problems..they are archly conservative.
My partner and I own a significant position in this security and remain very close to the management , the distributors, and the end user consumer of FRX product. It is obvious to us that the ramping up process is just starting and should show robust results very soon. You bears, (and I can certainly join your camp on other stocks) don't see the full picture here. Yes, the stock's mkt. cap is relatively high at present, however, it is reasonable given FRX's position in the Y2k industry. Try looking at the internet co.'s or the box makers for more severe mkt. cap overvaluations, or go ahead and short FRX. Be my guest, you'll only fuel my profits. I've done my homework here, have you? Past Q's and K's are useful, sure, but the market is a future price discovery model. Want to short this future.......step right up.
Steve |
