To: Robert Morrison who wrote (1357 ) 7/8/1998 6:25:00 PM From: Matthew Leo Read Replies (1) | Respond to of 1800
Hi Rob, I thought I'd take a shot at your questions. <<(1) will new buyers react negatively to a loss (expect say 5 cents a share)and sell down the stock;>> I think most shareholders, who did any research at all, are not buying the stock for this qtr. The attraction here is a rapidly growing revenue stream, high margins, the very real potential of yet another big communications market (worldwide public safety and utility company info on demand - PAID for by fed money), and complete replacement of US gov secure computers. This all makes for both a juicey shareprice and ideal takeover target. A takeover would be essentially free for many companies - just takes a wee bit of stock at these new high prices. <<(2) will we be getting any significant announcements and/or immediate institutional buying out of the scheduled conference on July 15th;>> I think we're already seeing it and more buying is to come. Expect news out of CYI that will fuel the fire. <<(3) if we do get institutions buying in $1M lots representing say 200,000 to 250,000 in stock getting pulled out of the market how soon will Bud Hawk need to split the stock to free up more shares-before December? Imagine 10 institutions doing this and suddenly the 'float' will dry up quickly.>> We can get to around $30 a share real quick - IMHO expect a series of splits from there. Assuming of course there is still a CYI - which I doubt there will be. <<(4) will the market forward project earnings from 3Q and 4Q and what multiples will be used and will reported 3Q and 4Q earnings being forward projected at the 100% per annum growth rate achieved over the last year.>> ?? What multiple is put on Dell or Amazon or other high fliers. I think everyone is looking beyond 3 or 4Q. <<Cycomm was incredibly at $1.25 less than 6 months ago. What a difference...>> Ain't that the truth. This feels much better, eh Rob. <Grin> Best wishes, Matt