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Microcap & Penny Stocks : CYCOMM (CYII)-on aquisition trail

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To: Bill Remein who wrote (1198)4/19/1998 8:55:00 PM
From: Robert Morrison  Read Replies (2) of 1800
 
Bill. The current volumes indicate that it probably is only "current" shareholders trading in the stock. As you say, it is just not a matter of attracting new investors but keeping current ones. Sounds simple but if nobody wanted to sell the stock then the price will go up. Seeing the company knows who its current shareholders are then maybe it should send them all a letter or pamphlet or copy of an analyst's report (Stern & Co's job)to keep them focused on the future.

Anytime the company gets some news out (other than a market announcement) the price does jump only to drift down again with a new set of disappointed & disgruntled shareholders. Those who know the stock play into this as the news is not consistent enough to catch them with their pants down...eg the news is so infrequent any trader knows the price will fall after a rise due to news.

This stock was re-capitalised to $10 two and a half years ago when it was trading at $2. Now it is at 40 cents (in old terms). No point in reconstructing the company and building value if the share price is not supported.

Just because the company's forecasts for 1997 didn't happen doesn't mean it should hide. Get some analysts in and put them to work and they'll support and spread the message about the future. All this costs money but add mega-value. Profitability is important but being penny-wise and dollar-poor is not what business is about. Confidence and boldness about the future is the key to every business success story. If you screw up or end up being late with profits, that's okay as long as the message is that you are serious about succeeding and have a fantastic dream for the future...this is what investors want to hear before profits.

Rob

PS Looking forward to being a "gruntled(?)" shareholder.
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