Summa Four and PCS applications? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Summa Four and PCS applications?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Len Hannegan who wrote (1)	11/11/1996 8:02:00 PM
From: Richard Levy	of 16

Although I am not particularly knowledgeable about the specifics of SUMA's technology, my understanding is that their VCO20 switch is targeted to the smaller PCS providers (beginning with the "C" block carriers). SUMA will hit a homerun if its switch is used by these PCS providers not just for enhanced services but also for core transport functions. We should know within the next 3 to 6 months. In any case, there is virtually no downside at these stock price levels, given that SUMA has approximately $6 per share in cash with no debt and is not losing money. Its results last quarter were adversely affected by the delay in VCO 20 shipments (which began this quarter) and a $600,000 charge for litigation (almost $.10/share pretax) in which SUMA is seeking the recovery of $5 to $10MM in damages. Its R&D expenditures (which are almost double prior year levels) is also temporarily depressing earnings. Once the order rate picks up and SUMA is viewed as a growth stock, the stock price could rise expontentially in a short time period, particularly given the small number of shares outstanding (i.e., 6MM). Rick

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next