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Microcap & Penny Stocks : USWE - US Wireless Data (formerly USWDA)
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To: rev who wrote (293)5/26/1998 7:51:00 PM
From: Rob S.   of 370
 
Agree. But with concept stocks credibility is even more crucial than with stocks that have proven sales and earnings records. USWDA has been saying that flurries of new announcements are "coming out real soon" so often that only a few fools believe them without at least some concern for their heads being grounded in reality. Leviakis told me who one of the firms is that USWDA has held talks with and the name is very impressive. Reportedly they held their 7th meeting but no conclusion has yet been reached. I have a hard time 1] believing that these meetings are substantive, 2] thinking that they will result in anything, and 3] believing that they will result in a much higher stock price. So I put the probability at only about 50% of their inking a favorable agreement that substantially benefits stockholders.

Whoever negotiates to acquire USWDA will be aware that the company has narrow prospects for building sales to the point that they become profitable unless they are acquired. That puts tremendous leverage with the buyer. USW's plan was to place about 70,000 units in the field by this time and start turning a profit this or next quarter. That is not even close to happening - they are making no substantial revenue from the small number of units placed thus far. So the sale will be mostly for the technology and agreements and small sales momentum they have established.

We may see $10/share if a buy-out occurs but we could also see $7-8/share. If that is the case, then the bet is 50/50 that you will double your money or own a stock that may end up worthless.
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