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Microcap & Penny Stocks : CYCOMM (CYII)-on aquisition trail -- Ignore unavailable to you. Want to Upgrade?

To: Mark A. Holder who wrote (805)	11/14/1997 6:13:00 PM
From: Ahda	Respond to of 1800

Mark i just went through the sec i agree. My concerns are yours. There was no mention of backlog i recall reading it in other companies if the rulings have changed in regards to this i don't know. I will attempt to find out this weekend.

To: Mark A. Holder who wrote (805)	11/14/1997 6:27:00 PM
From: Robert Morrison	Read Replies (1) \| Respond to of 1800

Mark. Those watching the stock on a casual basis see a loss and don't like it. Those however watching the trend also know they can probably wait for awhile before they jump in. The only danger for these possible investors is some contract announcements will leave them behind. Of course the other problem is the stock's history of its announcements being hit by selling...sort of like post-announcement depression...after an announcement another is not expected for awhile. You're right about the shortfall on the projected $20M for 1997. I think the big disappointment is the TEMPEST product line not meeting historical sales. This is where Bud Hawk got caught on the numbers I imagine. It has been stated that this is a cyclical business so hopefully in the coming quarters we'll see increased TEMPEST/PC Mobile/Slice sales all happening at the same time. The concept of piling up backorders makes good business sense if they are to have efficiencies in their production line so credit to management for putting business first (much to our short term chagrin). The 3Q report shows some major drops in operating costs to below $2M per quarter which if maintained will mean a more significant turnaround effect. The gross profit percentage is disappointing but if it represents writing back inventories to arrive at a true gross profit result on a fully productive assembly line then again it is prudent management. Insofar as the stock price, they will need to lift the stock out of this trading range to $4 to $5 if they are going to get major institutional buying due to the size of the cap at $2. Institutions may be in a "wait and see" mode as well as they often have difficulties buying at low trading values no matter what the bargain is....we are talking about portfoliio managers running on rule books not commonsense. The stock can't get much lower even with the effects of tax loss selling so I guess if "you're in it to win it" then now's the time to buy some more. I'm going to spend some more time analysing the numbers and will come back with more detailed analysis in the next few days. Rob