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Microcap & Penny Stocks : Quantum Technology Corp [QTTK]

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To: Paullie who wrote (72)5/5/1999 12:07:00 AM
From: Wolfgangus  Read Replies (1) of 137
 
some thoughts after speaking to management:

1. i do not know why there is not more interest in this stock. yes, there is skepticism on the street
about "black box" systems, but even so, i would have thought this company would have received
more attention. one thing i can say is that there has been no active promotion of the stock. the ceo
does not seem interested in doing so and is willing to let it find its own level over time. in the long run,
that will be good for shareholders and will allow us to accumulate more of this thinly traded stock at
reasonable prices.

2. as for the technology, i believe that it does represent a breakthrough in the sense that others are
not currently using it. that doesn't mean it will continue to work over the long haul, but it does mean
that it is not simply an old product in new packaging. i say this from a position of familiarity with other
computerized trading vehicles. as to when the deployment of the strategy will distort the market it
trades, that is an open question. it seems to work on enough different vehicles that it should not be a
major problem for the foreseeable future.

3. the business plan seems to me to be more in flux. i am not sure that the company has come up
with the best way to exploit the technology, but they are thinking creatively about it. dealing with a
large number of individuals who each want to invest small amount of money may be more
cumbersome than they have allowed.

4. the stock is so thin that it won't take much institutional interest to move it. if you are interested in
taking a decent shot at a speculative home run (as i am), i think you've got to take your position
relatively soon. this will be a hard one to chase if it gets moving. as they build out the infrastructure,
more people will become believers.

hope this helps-

W
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