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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 (1277)	6/7/1998 8:01:00 AM
From: Robert Morrison	Read Replies (1) \| Respond to of 1800

Don & Jim: Projections etc My projection for 3Q was a share price of $14 using a 4x's sales valuation method and $21 using 6x's. Projected earnings per share was 4 cents and with a PE multiple of 50 (ala Dell's) this came out at $15 per share ($7.50 on a PE multiple of 25). Any bidder for the company would use the 4x's sales and PE multiples near 20 to value the company (as somebody mentioned somewhere). A company already enjoying higher multiples in their own stock eg Dell would immediately add value for their shareholders through such a takeover. The 4 cents was before amortizations which I think the market pretty well ignores in high tech stocks anyway. By mid-1999, with growing revenues, $20 should be a cake walk if we are not already there by the beginning of next year. This biggest thing I am interested in with 2Q results will be the gross profit percentage and an improvement thereof. My projections were working on an average of 29.5% but we should be doing much better than this as the production pace picks up. Would love to see price above $5 and some analysts crunching numbers for some published research. Projections are getting harder to do as under $1M contracts are not being announced anymore and these are the bread & butter jobs that pay the bills. Also Tempest is all guesswork but should be improving. Next week should be fun. Rob