Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : High Growth Techstocks for 1998 -- Ignore unavailable to you. Want to Upgrade?

To: Bannick who wrote (503)	4/22/1998 12:44:00 AM
From: White Shoes	Respond to of 598

Hello, Mike, I am somewhat familiar with Zenon as I happen to know people who worked there. I like their business which after all is about making water safe and clean (etc. etc.). I think anytime that a bit of speculative air gets under Zenon's stock that it can be a bit overdone. Unless I hear otherwise I do not believe that Zenon has what it takes to 'really go places'...although they are in a good business and do good things. In other words these are scientists and not necessarily great business people. I have heard tell too of some of the delusions of grandeur syndrome there a la Michael Cowpland. So you've got a really smart scientist who drives a really nice car who will get a really nice analyst who drives a really nice car to say that a company which has never made more than a couple pennies profit will make a buck a share next year. Then whoops, it's only .65, then whoops next thing you know it's some kind of writedown or acquisition and confusing accounting thing, and then a financing is completed and whoops down goes the stock and a series of break-even quarters follow. I have no problem with that, the water gets clean and at least two smart people get to drive nice cars, and a lot of engineers get interesting work. But the implications for the retail investor are obvious. It's a question of feel but I am not overly impressed by the prospects for Zenon shareholders though you can bet the insiders will do fine. I'd sure be surprised if insiders weren't selling at these levels. However, this subjective analysis shouldn't be taken too seriously...I would be interested to pore over Zenon's numbers. As this field garners more coverage we will no doubt hear about it more. I personally won't be swayed by this, something says 'avoid' to me anyway. I see now by the chart that ZEN has reached the mid 20's...off the top of my head I'd say way, way overvalued. Worth $10 at most. But look at this market, there are a lot of stories like that right now! Probably the best thing for a company like this would be a buyout at a favorable price. Do you have access to any analyst coverage on Zenon? I see by Zacks that at least 1 analyst covers it (strong buy). I can probably e-mail you an excerpt of something if interested. I am sorry if it appears that there are niceties on the thread...but I guess I get a bit taken aback when we are here looking for undiscovered gems and someone tries to sell us on VIVUS. You raise an interesting point about the whole environmental cleanup field...it could be an investing goldmine but unfortunately a lot of the small undiscovered companies in this field have had troubles.