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Technology Stocks : ocom breakthrough technology -- Ignore unavailable to you. Want to Upgrade?

To: mod who wrote (548)	7/21/1998 4:51:00 AM
From: Q.	Read Replies (2) \| Respond to of 994

re. <<It does makes you wonder, why are they covering OCOM? What is in it for them?>> Good question. Considering that StockGenie seems to be basically an advertisement, then why are they giving their advertisement away for free? And why does the company react so swiftly, the same day the StockGenie article has its effect, in putting out a news release that basically touts the stock? The company has a critical reason to keep its stock price up. It is bleeding cash, and it will continue to bleed cash whether or not they are able to ramp a new product. So, the co. must raise cash by selling equity. The lower the market cap, the less cash they can raise.

To: mod who wrote (548)	7/21/1998 9:33:00 AM
From: Roger A. Babb	Read Replies (1) \| Respond to of 994

Dennis, shorting after 48 hours...........

To: mod who wrote (548)	7/21/1998 3:23:00 PM
From: Steve Patterson	Read Replies (1) \| Respond to of 994

<<It does makes you wonder, why are they covering OCOM? What is in it for them?>> They can pump it up, short it, and then cover as it retreats? Stock Genie usually does OTCBB stocks, which are not shortable (CCSI being the notable exception, but they were paid for that one). Also, exactly _when_ was the profile dated? It came out over the weekend, right? So the other possibility is that Stock Genie could have purchased their shares at 7.5 -8 Monday morning (48 hrs. after Saturday morning) and bet they could keep the hype going long enough to scalp a point or two. I checked their site but am not a subscriber so I couldn't find the time it came out. OCOM needs a short-term boost in their stock price so they can get more financing, because at their current burn rate $3 million isn't even a quarter's worth of expenses -- not enough to get them to their announced completion date for the ATM switch. So they have to receive payment for a lot of systems to make payroll, let alone cover the current loan before the floorless kicks in. However, they're not going to get paid right away for their systems even if they do ship a bunch of them the day after their switch works. Why not? Most businesses pay bills at net 30 or 60 days, and if they think their supplier may be in trouble, they'll string them out even longer, because the supplier might go bankrupt and then they get all the stuff for free. So even if you assume OCOM will do everything right from here on out AND everyone wants to buy their product, they still need a lot more money before they can get production quantities out the door, let alone get paid for them -- which means more financing. In short: OCOM needs a boost in their stock price, even if it is short-term; Stock Genie gets more credibility for their subscribers (see? we rec'd it and it went up) and either a long or short opportunity, depending on how they want to play it. Steve