OMPT!!! Message Board - Msg: 9554508

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Technology Stocks : OMPT!!!

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To: stock leader who wrote (485)	5/16/1999 8:18:00 PM
From: Bob Trocchi	Read Replies (1) of 531

stock leader... >>I believe a takeover or equity investment will occur within a year. They will need it because they already over a $700 million equity deficit. << Clearly if they do not get taken over or get additional equity investment, I do not see how they will survive. Their current book value is Negative $16/share. I ask you why would anyone pay a premium over today's stock price considering their book value is -$16/sh. Further, the significant costs for future build out will put them further in the red. Additional equity investment is risky as this causes dilution if OMPT issues shares for the investment or they pay huge % interest rates. In either case this is not really a win win situation. One short term factor in their favor is the large number amount of short interest that someday must be covered and could lead to a short squeeze. All in all an interesting situation. The wireless game is growing like gangbusters but you need VERY DEEP pockets to offset the huge build out costs and IMO, OMPT is on thin ice with the current debt they are carrying, negative cash value and huge cash flow problems. Bob T.

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