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Microcap & Penny Stocks : CYCOMM (CYII)-on aquisition trail -- Ignore unavailable to you. Want to Upgrade?

To: Ahda who wrote (1419)	7/17/1998 1:11:00 AM
From: Robert Morrison	Read Replies (1) \| Respond to of 1800

When I looked at Yahoo originally a couple of years ago I thought "Search engine with half a dozen competitors with what for cashflow?" Then I looked at Netscape's performance and thought "Gee if the most popular browser (pre-Microsoft Internet explorer) can't get a lift off then the market must think the internet is still in diapers and a search engine is really only an add-on to browser software etc". Made a lot of sense right....wrong! When we had a correction last year I anticipated it and wrote out a list of companies to take put options on: Texas Instruments and Infoseek looked the best candidates but of course TXN had heaps of asset backing, an earnings history so I bought Infoseek puts instead of TXN. I made $3K on the correction instead of $40K if I had bought TXN. Lesson in all of this, and I won't forget it, is the US market is always looking to the future and this is where the Internet lives. Cycomm fits in the future but only if it articulates what its market is and what its share will be. With momentum it will be a winner and momentum doesn't need historical earnings to start. For example I have calculated a $18 per share price on 4Q earnings to be announced in March next year. This is based on a forward projection on expected 4Q results WITHOUT revenue growth. If the market forward projects 4Q earnings per share AND adds in a 100% revenue growth rate similar to what Cycomm has been achieving (97:$15M, 98:$30M...99:$60M!) then we could be looking at $30 plus by early next year. It is up to management to get the momentum going through both ensuring the message is that Cycomm will dominate this future market in secure mobile computing and that everyone hears about it. I think is what everyone expected Bud to start this week. Don't forget that institutional investors only want to buy stocks that will eventually be bid up by smaller investors in the market. If this wasn't the case then every investment would be trading on nice safe historical earnings alone. Rob