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To: TeamTi who wrote (1499)	11/26/2003 3:46:54 PM
From: jjs64	Read Replies (2) \| Respond to of 1766

Every Thanksgiving there is always some stupid mo-mo-moron retail mania. A few years ago it was BAMM, then ADSP (now ADSPQ), etc. This year it seems to be a little company called EGHT, being pumped by Tobin Smith of Changewave Investing. forbes.com According to Forbes article: Smith is buying EGHT for a number of reasons. "First, it has a better product than Vonage," he says. "Second, it just sold off its microelectronics business--it's now a voice broadband pure play." Well Tobin, its about time you got schooled in REAL research. 1. Vonage is a service provider, the "product" that they sell you is a Cisco Telephone Adapter. Its doubtful that EGHT has come up with a better mousetrap than CSCO. 2. If EGHT is really better than Vonage, its tough to say, since according to the EGHT 10Q for 9/30/03 they only had 200k for revenues from their VOIP business. At $20 a month, that would be 3334 TOTAL CUSTOMERS! Now I dont know how many customers Vonage has, but I hardly think a firm with under 5k customers can really claim leadership in anything. (See Note 10 to financial statements in the 10Q) 3. As for selling off its microelectronics business, I guess Tobin didnt read the 10Q. The sale will only go through if STMicro (STM) allows it to go through, since the EGHT chips are based on STM tech and the license is NOT assignable. So until we hear that STM has ok'd the deal, its not complete. (See Note 1 Under Liquidity) 4. Did Tobin bother to read the Liquidity note, cause if he did he would see the company put its going concern warning right up front, cause it is in terrible shape. 5. In the last few months the company has issued tons of warrants (approx 3.5mm) struck under $1. They also issued about 2.5mm more wts around 3.60, this is on top of the blocks of stock they sold at 2.82 and at 43 cents. Maybe Tobin didnt read that note to financials (Note 4) 6. Did Tobin read note 10, Segment Reporting, where it is revealed that EGHT's VOIP business has NEGATIVE gross margins. That's right, NEGATIVE Gross Margins. Great business there guys. 7. Did Tobin bother to look at the history of this company? It was pumped a few years ago as a video conferencing play. That didnt work, they changed their name and became a chip company, now that didnt work and they change their name again to be a VOIP comapny....PATHETIC. Buyer Beware!