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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 (1213)5/1/1998 4:55:00 PM
From: Robert Morrison  Read Replies (1) | Respond to of 1800
 
Jim. Rumor on Yahoo thread that Bud Hawk wants to take CYI private. If you look at insiders' share position and control made up of primarily options this rumor makes absolutely no sense.

Taking a listed company private when it has a potential capitalization of 25 times earnings is like saying you want to make much less than 4% on a high risk investment (technology). This is why you will only see your 7 or 8 times earnings enterprises being subject to management buyouts.

The only way you would see a takeover scenario with CYI is with a major coming in and picking up a strategic launch pad position of say 20% - which of course would send the other 80% through the roof so what's the point.

The current stock price does reflect perhaps insiders keeping the stock price in their buying range until the big turnaround. When you see insiders coming in again this will be a clue that the turnaround is imminent.

Rob