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Microcap & Penny Stocks : OWLD OneWorld Systems -- Ignore unavailable to you. Want to Upgrade?

To: X-Ray Man who wrote (1432)	6/17/1998 11:54:00 AM
From: Potato Farmer	Read Replies (1) \| Respond to of 1648

X-Ray, Anytime now Nasdaq will require that GVIL / OWLD submit a plan to raise the price above a buck. With the stock at 9/16 and no expectation of profits soon, the only way to do that is with a reverse. OWLD's market cap is now less than the amount of money they got for the modem business. Interesting. But they were never 100% clear about just how much of that $10 mil was in cash and how much was assumption of debt. Or if they were clear about it I missed it. My guess is that they have maybe $6 mil in the bank, and a burn rate of maybe $750,000 per month. How much debt they still have is anybody's guess but let's be wild and say $2 mil. That would give them (4/.75) or about 6 months before they're in trouble again and maybe 9 before they're out of business, unless they can make the cool new product cash flow positive in that time. Making the product cash positive is tough. First, they're selling it to VARs, so orders trickle in one or ten at a time. If the gross margin is 60% and the ASP is $2000 then the GM per unit is $1200. To cover a $750k burn rate they would have to peddle over 600 per month. The old One World sold maybe 200 per month, maximum, and that was through distribution and catalog sales! Perhaps their real hope is to get a few customers signed up, be able to show a couple months of rising sales on a graph, and sell the whole sorry business to 3-Com or Bay or Ascend. It could happen. Maybe that bet is worth dropping 56 cents on. More likely, maybe not. Pete F.