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Technology Stocks : Racom Systems (RCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Gutterball who wrote (193)	7/31/1998 5:25:00 AM
From: Gutterball	Read Replies (6) \| Respond to of 468

THE MARRIAGE PARTNERS It is unlikely Ramtron and Intag will spin off Racom unless it is a win-win situation #reply-5365007. I have already discussed the importance for Ramtron to set Racom up as portal to the smart card market lest they be shut out of FRAM sales by others with deeper pockets. Ideally Racom will partner with someone who is a powerhouse in banking solutions like Verifone #reply-5370374. Now that a Verifone consultant (Bertman) has shown up on Racom's door step, the possibility of an alliance or take over can not be ruled out. Especially, when that person's accomplishments included "development of new business opportunities through acquisitions and strategic alliances #reply-5362631. Considering Hewlett-Packard's Electronic Commerce Strategy is to tilt the playing field in its favor, the vertical integration of Racom falls within this strategy. Specifically, Verifone is going after the electronic payments market, including standards for secure transactions, and Internet-based smart card payment systems while seeking a competitive advantage in selling server-based systems for home banking. It would not be unreasonable to sustain rate of growth by including contactless, multi-application smart cards in their product line that could be sold to banks along with their smart card readers. Recall this is the pay millions to earn billions incentive discussed earlier. killen.com In Effect, Racom would provide Verifone access to its percentage call on FRAM, thus enabling it to better compete in the market place. Likewise, Verifone would provide Ramtron an extensive network through which its FRAM chips would be distributed. It's a win-win-win situation!