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

To: James W. Bradsh who wrote (1106)	3/9/1998 4:10:00 PM
From: Robert Morrison	Read Replies (1) \| Respond to of 1800

Jim and all. Don't forget that CYI has some $40M in tax losses to utilize before it pays any income tax. This will leverage up the earnings and cash/asset backing per share dramatically this year. The acquisition of M3i Technologies (now XL Canada) was a smart move as it allowed all the old Canadian tax losses to be used against the Canadian subsidiary's earnings as well as the technology to be obtained. Even though the stock price is not moving it can easily be seen that the meticulous and tedious building of a solid business has been going on over the last 2 years. Now with experienced, well-connected management in product development and sales coming on board and an ever-expanding order book, the market is foolish to not be paying attention to this company. Maybe Cycomm is right in not overly promoting the stock until results are on the board or imminent but EPS may be unimportant as a marketing tool unless they are combined with a big "sell the dream" promotion. Often you see earnings improvements announced and the price goes nowhere or down simply because the market responds "Is that it?" This of course is not the case if you get a major earnings surprise which has the ability to get the attention of the market. When I look at Transcrypt International (TRII:NASDAQ)and at how it can have a market cap of nearly $300M when losing money and making miniscule contract announcements, it is clear that we probably need a "dog and pony show" and a big stock promoter push with Cycomm if we are ever going to get a breakout. I don't think 10 or 12 cents/share per quarter earnings is going to do it all on its own. Some earnings and a little bit of magic can take CYI to the $20 range. It was there once before simply on hype and it won't get there again unless the market is told this is what the stock is worth. Rob