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Technology Stocks : XYBR - Xybernaut -- Ignore unavailable to you. Want to Upgrade?


To: Shane Venem who wrote (696)5/18/1998 12:42:00 PM
From: LT  Read Replies (1) | Respond to of 6847
 
Of course they are weak financially, as are most fledging technology companies. This $10 million dollar equity line should see they remain a float till the money starts coming in end of this year. I see it as a positive thing. The equity line.

LT



To: Shane Venem who wrote (696)5/18/1998 12:51:00 PM
From: Charger  Read Replies (2) | Respond to of 6847
 
Coming from the Yahoo statement, XYBR has 14.4 mill shares OS and a float of 6.3 mill. DELL, on the other hand, has 640 mill shares OS and 493 mill shares in the float. I may not be comparing apples to apples, but my point is that with a good product, there is room to issue more shares. Of course any issuance of shares is a dilution, but XYBR certainly has done a good job of not diluting the stock too much so far, and with good earnings (presumably, of course), the dilution would not matter so much. Again, look at the number of shares in DELL.

XYBR financial strength rating (on Yahoo) is 2.29 with a debt ratio of O (zero). DELL, on the other hand has a strength rating (by Yahoo) of 1.45 and a debt ratio of .01. Now, I am not an accountant, nor do I understand how these ratings are achieved. I am just noticing comparisons.

The amount of money put into R & D seems reasonable to me. I could find countless similar examples. To have a line of credit also seems reasonable, in fact smart, to me.

Remember, the contract with SONY is for SONY to build the units
using SONY capital, so the contract is not a threat, it is potential income, and I am not sure that XYBR even had to bond anything with an insurance policy, as was suggested earlier on this thread, tho I am trying to confirm this with Moynahan.

Charger