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Technology Stocks : Innovacom (MPEG), [announced single chip MPEG-2 encoder] -- Ignore unavailable to you. Want to Upgrade?

To: DiViT who wrote (5662)	6/23/1998 8:13:00 PM
From: Alberto Llaurador	Read Replies (3) \| Respond to of 6297

David, I agree with you 100%. And on the same cautionary note, let me pose the following questions... if they do manufacture products as they now say, who will sell them? And who will service them? Do they have the infrastructure in place to do this? Do they have the capital to set up such an operation? $500,000? 2 MIL? Are they kidding? I'm not even mentioning other variables as advertising, collateral, training materials, staffing... Now, the crucial question here in reality is: who will buy these products? I've been involved in the motion picture/broadcast industry now for almost 20 years and believe me, I can't see any production company manager out there purchasing unproven equipment from an unproven company. Specially one that happens to be on the verge of bankruptcy. The last person I witnessed taking such a risk eventually lost his job when he couldn't even get his equipment serviced. The market InnovaCom is trying to crack is a market dominated by world class companies with impressive track records and equally impressive capital assets. Those are the ones that these buyers will turn to (for security and peace of mind), even if they have to pay a little bit more or wait a little bit longer for the products to roll out the assembly line. Besides, these companies can afford to strike good deals to push the technology, a struggling company would be hard pressed not to if they are to survive the time it takes them to roll out the next generation of products. Remember, this is not a one time shot. To play this industry, you have to keep shooting and shooting and shooting. My friends, that takes lots of time and money. And InnovaCom doesn't have either. The more I think about it, the more ludicrous I find these press releases, not to mention this "newfound" direction for the company. If the new President manages to turn this company around, I'll be more than happy to tear off the certificates off my TV room (read: DV room) wall. On that note, I thank and bid you all serious investors in this thread good-bye and good luck.