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Technology Stocks : Innovacom (MPEG), [announced single chip MPEG-2 encoder] -- Ignore unavailable to you. Want to Upgrade?

To: ZJOHN who wrote (5247)	4/8/1998 7:12:00 PM
From: Alex Dominguez	Read Replies (1) \| Respond to of 6297

Market makers often shake out the "weak" hands in the stock by lowering the price.This is a common way for them to inventory a stock they are making a market for. I wouldnt worry too much as to why it moves the way it does until they get on NAZ. (feels like its been an eternity). Also gentleman on a side note, No company especially the size of Innovacom could possibly lure the type of talent they have been able to lure without showing them something! Expect to see large contract to be announced soon(my factless prediction :-).Think about it,all the hiring in all areas,bigger offices,new ceo, Sprague,etc...I put 2 and 2 together and it spells CONTRACTS COMING... Alex(expecting European trips to pay off)

To: ZJOHN who wrote (5247)	4/8/1998 10:42:00 PM
From: John Cinicolo	Respond to of 6297

My take on the stock price, and this is only an assumption, is that stock was part of the package to bring these heavy hitters onto the team. These two new members are leaving longheld and prestigious jobs to build a new company that they believe in and therefore are likely to get a significant chunk of ownership. The dilution of stock is offset by the abilities they bring to the table to build a successful and profitable company. I see the stock price movement as a playout between the increased potential and extra stock handed out. Until some concrete numbers are shown to indicate that the company is ready to take off, I don't see much of a change in price. Having said that, my take on the articles and announcements, especially about the Transpeg product, is that MPEG has become a major player in digital video broadcast with a great product offering. They seem to be very aware of the types of issues that broadcasters' have in transitioning to digital format and are willing to work with them to offer end-to-end solutions. The chip is merely the "hub" of a system, but the ability to take different inputs of different formats (analog or digital), resolutions, bit rates, etc. and encode them to different output devices of different bit rates and resolution seems to be a significant feature, especially if the price is low. If they continue to work with customers to develop solutions and not merely deliver hardware, they will build a strong customer base. If you don't believe me, take a look at Motorola, once a leader in cellular phones and systems, and now falling way behind its competitors because they have not been able to offer their customers timely solutions. (Wall Street Journal article late February and RCR article about 2 weeks ago). Needles to say, I am still impressed with this company and am hanging on for the long haul. John :)