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

To: Sterling who wrote (1493)	8/8/1998 8:55:00 PM
From: Robert Morrison	Read Replies (2) \| Respond to of 1800

Stock prices are a reflection of the ability of management to market the company. Institutional investors are really only important when a company is doing a public offering. In other words it's all very well and good to have institutions holding your stock but isn't it easier to simply keep your current shareholders from selling. It's called customer loyalty (the buzzword of the '90's) and is derived from studies that have confirmed commonsense like 'it costs 3 times more to attract a new customer than keep a present one' or the Pareto principle that '80% of your business comes from 20% of your customers' etc. Small stockholders are what drive a stock price and therefore are just as important as institutions who being adverse to risk will always follow their lead. The Internet is making corporations more transparent and stockholders more powerful and is a fantastic opportunity to get the news out quickly, cheaply and comprehensively. Companies like Yahoo realize this and this is why you will see 4 or 5 announcements or news articles a day and when it looks like the stock price is stratospheric and can only go down, what does Yahoo do? Do they stop making announcements for downgrade earnings to get the stock price down because someone might criticize them? No they simply split the stock, even when the market is tanking, because the market worried about it being $180 but is happy at $90. Simple commonsense for a technology company that is selling the dream. Cycomm has to sell the dream. When it happens doesn't really matter to the market as long as it knows the company is heading in the right direction. Rob