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Technology Stocks : Fonix:Voice Recognition Product (FONX) -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Bob who wrote (1441)	12/6/1997 11:58:00 PM
From: VALUESPEC	Respond to of 3347

I just spent many hours researching Lernout & Hauspie (LHSPF) and was quite impressed with that company. FONX was mentioned on their thread, and I decided to learn more about FONX. Besides reading some posts here and reading FONX's CEO's letter which is in their webpage, I don't know much about FONX. However, I do have a number of years of experience with micro-cap stocks and I offer my impressions of this company which are negative. Not knowing anything about FONX when I read the CEO's letter, I felt he was giving "bull". He was quoting Linus from Peanuts, and was saying how he "invited" prominent scientists to see the technology but couldn't reveal who they were. In short, it sounded unprofessional and "scamish". Regarding "affilialtions", they don't mean anything, especially when they are vague as in the case of FONX's PR with Sieman's. I have seen companies like MTCI constantly harp on "affiliations" with big companies, and then go to pennies a share. Also, other types of affiliations with large, well-known companies also don't mean the company is a better company. Sometimes it just means they are better looking cons. For instance, one misperception is that to have a big eight accounting firm means something. It doesn't (I don't know who is FONX's auditor). TLTK is a good example. With a prestigious Auditor, they turned out to be frauds. Anyway, look at a company like LHPSF. They claim to have good technology. They claim that new products will come out by "X" date, and they do. Also, when they have press releases they are clear. What are the fruits of FONX's tree in comparison to a company like LHPSF? Regarding the balance sheet, FONX's current assets are just above the current liabilities. This means they will probably continue to have more offerings which will dilute the stock and probably cause it to go down as the debt will probably be convertible instruments or Reg S shares( I don't know if they ever offered REG S shares. I would guess they haven't). I also noticed that the company was to be given $ 4 mil and $ 3 mil as part of a previous financing arrangement when FONX requested it (I just read some of the 10Q). I don't know if this financing was already received by FONX, but the financier is not obligated to give the money if the market cap falls below $ 200. It is just over that now. Anyway, sorry for this harsh post on FONX, as its probably not what a lot would like to hear. However, I offer my objective thoughts for what it is worth. BTW, I haven't bought any LHSPF yet, but I may, especially if it can break down to the $ 30's. Regards, VALUESPEC

To: Dr. Bob who wrote (1441)	12/7/1997 3:10:00 PM
From: Fairways9	Read Replies (3) \| Respond to of 3347

Bob and others, Does anybody else besides me see a similar pattern of Fonix's stock price as last year? The stock fell from 9 to 5 in October and November of last year but rebounded nicely after year end. I wonder if all those options that are given out are playing into this stock? I realize that this is VERY, VERY soft but it has been on my mind recently. Also, I think Bob has fairly summarized things in his last posts. Anone who thinks Fonix is a scam is as mislead as someone who thinks this stock will hit $50 in 1998. Marc