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

To: NightOwl who wrote (203)	8/1/1998 2:54:00 PM
From: Technored	Read Replies (2) \| Respond to of 468

Hi...Robert/NightOwl/0\|0; I assume that Verifone has a conservative interest. The telephone authorization system, which is the major reason that smartcards have not been important in the US, is a cash cow for Verifone. However, I have not studied the recent situation as much as Dan or yourself. Some time ago I concluded that smart cards would not grow as rapidly as touted, partly because the banks cannot see a profit, and may smell competition. If you like conspiracy theory, then you could speculate that HP/Verifone wants to control a technical threat...they see the potential demise of the telephone based system, with central control and processing. Smart cards represent the future of distributed processing. So they may attempt to manage the transition. Also, HP/Verifone managers may now be accepting the roseate projections about Internet commerce. Recent deals suggest that the big boys are starting to get the Internet bug. To allay fears about security, which are said to inhibit e-commerce right now, an elaborate smartcard might be appropriate. And, a FRAM contactless card is better, due to greater reliability, lower costs of ownership, and better lifespan than a battery-backed card. Still, the stock and the insiders ought to be stronger if there are deals cooking. Regards, Logan