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

To: Gutterball who wrote (233)	8/10/1998 5:45:00 PM
From: djduncan	Read Replies (1) \| Respond to of 468

Aw, shucks. No speculation in such a target rich environment? Maybe a version of your takeover theory is coming true. Maybe someone wants a big stake in this puppy. Kind of an emergency meeting, eh???? My own bit of speculation is the following: The decision has already been made, whatever it is. Meaning, if they are about to perform a private placement, they know the buyer. If secondary PO, they have talked to I-bankers. This route is somewhat unlikely, since the dollar value of the offering is pretty small compared to the costs. More likely a private placement. Looks like Hinds is shaking things up. DJD

To: Gutterball who wrote (233)	8/11/1998 7:44:00 PM
From: Gutterball	Read Replies (1) \| Respond to of 468

Here's my take on the proxy. However, I'd like to see more information from Racom and I'm hoping we get it once the new CEO is on board and before the special share holding meeting. First, to make the intent of the proxy work, Racom has got to get its price up. Therefore, expect Racom to move in that direction. I'm talking disclosure of new contracts and alliances, and deployment of technology. And for those who have endured the Racom trenches, I'm talking higher prices. Thus, near term, there isn't a lot for the Yahoos to worry about -- we can cancel that thread. Second, and this is the best case scenario, Racom is lining up a partner to make an equity placement in Racom. A partial takeover if you will. Now that Racom will be announcing a new CEO, it appears they intend to realize their own potential or at least as much of it as they can. To do this, they will require funding, hence the proxy. The key for us wee investors will be the kind of financing they line up. At current stock prices, the only financing with a survival likelihood is an equity placement. No mention of the kind of financing Racom would be looking for was made in the proxy. If Racom wants to keep calm amongst the wee investors (you know, the little people whose only significance is that they determine the price of the stock on a daily basis) they need to address this issue before the vote. Else, if the increase in shares pass and Racom has failed to sell the idea to the wee investor, we'll see price go to hell in a hand basket -- and fast. FOOTNOTE. This is an unique moment in the history of Racom. We have a chairman who appears to want to relive the glory days, when he helped grow Verifone to a $500 million company and he is building Racom an X-Team to do it. He believes FRAM is the killer bee of smart cards and here's hoping he can crystalize that idea in everybody's mind. That's the meat of it. All we have to do is buy a ticket and watch the show -- bitch (with style) when RCOM is down and cheer like hell when RCOM is up, that sort of thing. The best show in town for a buck. Bring your family if you want more tickets.