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Technology Stocks : NewCom (NWCM) -- Ignore unavailable to you. Want to Upgrade?


To: Fred Fraschetti who wrote (610)9/5/1998 10:47:00 AM
From: Ralph Ulisse  Read Replies (2) | Respond to of 662
 
Fred -

Look at the damn facts Fred! Why would Paperheart cover his position at $4 1/2 when he thinks the company is going bankrupt? Everything he mentioned relative to Newcom is because of Harry and Aura. He hasn't been right yet. Has the company filed Chapter 11? Has the company diluted earnings (Reg 'S/D')? Has Aura sold much of their stock (~320,000 shares early spring)? Where did Paperheart get his shares to cover? He thanks us, and I don't know about you, but I haven't sold 1 share. They like to prey on peoples fears. This is a margin call play, and people like David Evans help fuel the fire for the shorts. Until something he states becomes TRUE, then let's focus on the fundamentals of the company. All growth companies have cash flow problems!!!!! Wait for the financing deal. If it's an Aura famous Reg 'S/D' deal, then Paperheart will be correct with his comparison between Aura and Newcom. I don't think that's the case. The Inventory and accounts receivables are the only issues, and I think the company is addressing these concerns.

The R&D comparison is stupid. I noticed when looking at your profile that you work for Ford. Does Ford typically spend money on component R&D? Ford integrates systems. Suppliers spend money on component R&D. So ask yourself, how much money does Newcom spend on a Hitachi DVD, or a NEC CD-Rom drive? The same, Ford spends on a glove box latch! $0.00. (NOTHING)

Also, I noticed you follow SDRC. What year was it when SDRC had to reinstate their financials for two prior years? The stock hit a low of $3 5/8 and then proceeded upwards to approximately $36.00 two years later with the Ford contract (I'm sure their financial concerns were also a concern of Fords, but after looking at the FACTS, Ford continued with their selection). I'm sure people sold SDRC at $4.00. Buy SDRC at $9.00, it's probably a great buy at these levels!

Ask yourself, if Paperheart covered at these levels, should you average down? I don't find anything funny when I see organized shorts shorting a stock and playing with individual investors. Time will tell. Wait for the financing deal. Soon the true story will be told.

Also, the 4th Network IPO should help the cash flow situation. I think Paperheart said, Newcom was paying 4th Network to take Webpals off their hands. Let's see what Newcom's $5 million dollar investment is worth when 4th Network goes public in Late September. Paperheart, you asked where the $ from the IPO went, well, I know where $5 million went. I think will be an excellent investment.

FOCUS ON THE FACTS, NOT THE STOCK PRICE!!!! MARKET PSYCHOLOGY!!

Message 3259885

Cool_Hand_Luke - Any thoughts???