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

To: James W. Bradsh who wrote (1426)	7/18/1998 11:28:00 AM
From: Sterling	Respond to of 1800

On the warrants: From the current open market price of CYI shares I see no negative impact for those who already own the stock both with respect to exercise price and to share dilution. I expect them all to get exercised, but don't think we shareholders should. Any dilution will be transient within an uptrend. Perhaps someone buying CYI shares in the open market at a later date and a higher price might feel the pinch a little for a short time. But prospective open market buyers can buy shares now and simply hold them for a few years. I'd bet that will be good for a 300% gain. CYI current float isn't all that large. There is room to expand it as the company expands revenue and earnings. As far as using CYI as a trading vehicle, I'd say marginal price variation is too volatile above trades greater than 4,000 shares. And that number would probably decrease with the frequency of such trades. So unless the quick and the nimble were content with splinters of fractions or used a longer holding period for their trades, I doubt CYI would hold much interest in that exercise for long. The only current speculative use that I would think could be applied is high volume short selling. Personally, as a shareholder I would encourage people to do that. It will certainly add to price appreciation at the appropriate time and put a serious dent in the net worth of short accounts. But this too has probably dried up a bit, as recent short interest figures have shown a decrease in the uncovered positions. CYI is just one of those boring buy and hold stocks that will make patient shareholders some money.