CYCOMM (CYII)-on aquisition trail Message Board

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

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To: James W. Bradsh who wrote (1353)	7/7/1998 1:10:00 AM
From: Robert Morrison	Read Replies (2) of 1800

Any takeover will take any of three forms (1) friendly with a proposal to shareholders backed by management or (2) aggressive on market bid either as the first bid or (3) against a 'friendly' proposal. Insiders do not have enough control here to guarantee control to a friendly bidder and there are no major institutional shareholders to be courted to get a sizeable shareholding on the quiet. If a friendly bid was made then management would have to work hard to make the deal attractive to all the little shareholders who control this company and this would have to be in the share price in order to keep out rival bidders and get maximum shares in one hit. The other issue is that until gross profit percentages improve then on a financial basis a takeover is presently unattractive to a major as they would have a hard time selling it to their shareholders. Furthermore until more contracts are in the bag then a bidder would be wary of paying a premium for goodwill in the share price if the bidder was at risk of not ultimately getting the business. You are right that a takeover may happen but not for at least another 6 months when the home runs are on the board. Rob

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