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Technology Stocks : Equinox Systems (EQNX) -- Ignore unavailable to you. Want to Upgrade?

To: Dragon who wrote (533)	6/22/1998 7:36:00 PM
From: HeyRainier	Read Replies (1) \| Respond to of 765

Thanks very much for the update, Dragon. I see you also got the impression that Mark Kacer seemed a little beat up. He did seem that way to me, and that was just in the afternoon. It's good to see that he is returning calls; it certainly beats the other companies I've seen who just carelessly ignore the concerns of their shareholders. EQNX gets points here, as I rarely see this kind of concern for shareholders. What next? The only redeeming action they could take right now is to initiate that share buyback. I like nothing better than to see management put their money where their mouths are. And it would certainly be a good use of that cash that just seems to pile up at headquarters (which is now 39.3% of the stock price). The buybacks, while positive, did reduce the float, which used to be a little over 3 million as of last year. From the most current read from Yahoo!, it appears that it has been reduced to 2.4 million shares. Earnings were expected to hit $0.22/share. The warning takes us down seven cents, which is equivalent to $363,300 market value (0.07 * 5,190,000 shares outstanding). The reward: a reduction in market value of $42.3 million (assuming a point decline of $8.156 and 5.19 million shares). Reasonable? No. But, if you decrease the float, keep the shareholders in the dark (which kills the stock price), and then release an earnings warning, and I'm sure you are going to get a stock price that falls way beyond the expected decline that one usually experiences under more normal liquidity conditions. The overreaction was exacerbated by the low liquidity. And such situations may be considered opportunities by the level-headed. Only time will tell. The stock has some rebuilding to do. And so does management. I feel sorry for Mr. Kacer, in that his options just tanked, and I'm sure he's lost millions in net worth. The management team is in the same boat as the shareholders. Let's see if they can continue to build on what they had successfully started in the past. Regards, Rainier