Silicon Investor (SI) -- The First Internet Community

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 : VNWC Video Network Commun(was VNCI) -- Ignore unavailable to you. Want to Upgrade?

To: wyllisx2 who wrote (33)	11/5/2001 11:39:22 AM
From: PartyTime	Read Replies (1) \| Respond to of 72

Wyllisx2--Sorry it took so long to reply to you. It's just that this particular VNCI thread is so little used I don't check it daily. It's my view VNCI became a victim of bad-timing more than anything. It wasn't until Q2 that VNCI turned its first profit, however, it was already under pressure from Nasdaq due to failure to meet the net tangible asset requirement of $2 million. The company appealed this decision and the matter was considered pre-9/11. Well, things changed signficantly since the Nasdaq-VNCI hearing. VNCI has sported a protitable quarter and guidance for a profitable yearend and the sector for its technology has gotten hot. Meanwhile, Nasdaq came under some pressure for its decision post-9/11 not to delist companies trading under a buck, which represented 15 percent of its listed stock. I think Nasdaq, thus, got strict in other areas of the delisting process and ddidn't grant VNCI's appeal to avoid the delisting. Meanwhile, VNCI did the bridge loan and constructed a secondary and tertiary back-up financing plan as part of an effort to prevent the delisting. But Nasdaq didn't buy it. I think if there's any hint we can gain about where VNCI is at, it's the fact the company only sought a bridge loan. Given the recent string of contract announcements, the path of growth that's taken place under Muscari's leadership, the company is better today financially than it's ever been. It's technology has been developed and is now in the marketplace and appears to be gaining wide acceptance. So it seems like VNCI plans on dealing with its debt from its own revenue stream, rather than seeking largescale outside financing. VNCI has 6.5 in liability against 8M in assets. It's not in that bad a shape. If we see a profitable Q3, and Q4 shows better than projected results, VNCI will be in great shape and will have little difficulty getting back on a bigger trading board. I think you just gotta hang in there! My simple view is any VNCI buy under two bucks is a good one. Such is my long view. Good luck to ya!