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Technology Stocks : CoSine Communications(COSN): -- Ignore unavailable to you. Want to Upgrade?

To: metoo105 who wrote (117)	11/26/2007 1:32:47 PM
From: caly	Respond to of 124

mt, Actually, I've not seen the writeup you mentioned. I followed CoSine a long time ago (and had dealings with the company technically at one point), but hadn't paid much attention them after the downturn. I think it must have been Fortinet's announcement earlier this year that caused me to go look at their filings. I had no idea they still existed in any form. I've been following them since, but not with any vested interest. I have no experience at all with how to value a shell like this. I've considered taking a small position now and again, but it would really be venturing into the unknown for me. Sorry I couldn't be of any help.

To: metoo105 who wrote (117)	4/30/2008 11:53:20 PM
From: Glenn Petersen	Read Replies (1) \| Respond to of 124

You appear to be on the same wave length as Eric Appell: CoSineTrading at Cash; $20/Share of NOLs by: Eric Appell posted on: April 29, 2008 I suggest investors think of CoSine Communications (COSN.PK) as a Special Purpose Acquisition Vehicle [SPAC] that is trading at cash. I have followed Cosine for years. They used to sell network equipment to the telecoms and once sported a market cap of $5B. Today, the market cap is $25M (yes, million), which is close to its cash position of $23M. The company has only 1 employee--a CEO--and is profitable because interest income is greater than operating expenses. Here's the reason to own the stock: The well-known activist fund, Steel Partners, together with an affiliate, own just under 50% of the shares. Their average price is roughly $2.25. Steel Partners and COSN are looking to acquire a profitable company in order to take advantage of COSN's $207M of Net Operating Loss [NOL] carry-forwards. That's $20/share in NOLs. After talking with the CEO, it's my belief that COSN will probably buy a profitable division within a much larger company. After all, Steel Partners does a lot of deals, and at some point they should be able to find the perfect company to slide into this shell. Given the valuations of SPACs pre- and post-acquisitions, I think COSN's ultimate valuation could be 2x-4x today's. Disclosure: Author holds a long position in COSN.PK seekingalpha.com