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Technology Stocks : Noise Cancellation Technology (NCTI) -- Ignore unavailable to you. Want to Upgrade?

To: bottomfish who wrote (2408)	10/23/1998 11:59:00 PM
From: jean1057	Read Replies (1) \| Respond to of 2775

I do not think this stock is dramatically falling anymore...the posts here are just from various investors that have been and still are very frustrated with what is going on with nct.......the products are great and with a good management in place the company and its stock should go north...but as I agree the mgt is lousy and just ...frustrating investors...including of course myself...I do not understand how a CEO, Mr Parella, is able to hold his position for so many years, without showing results to the shareholders....it looks like it is a very close relationship on the mgt. level...great big family...sharing the wealth..eh.....we won't see 0.10....and even if we get 10 cents that would not change the fat bonuses the mgt. awards itself with.......seems that the shareholder do not give a damn either..otherwise they would have stopped the increase of dilution in stocks many years ago.... good product....no shareholder value..... sad story...but proves again ..that a good product is not the most important .......good mgt...is 50% of the rent....

To: bottomfish who wrote (2408)	10/24/1998 2:30:00 AM
From: MIKenn	Read Replies (1) \| Respond to of 2775

Why do I think the stock will continue to fall? Share price continues its steady decline without ANY recent uptick or rebound. There is no sign of immediate recovery at all in recent trading. Management asked for authorization to issue up to 255 million shares total. Using the same method as has been used for 11 years (issuing stock at a discount), money will be used to fund more losses and acquisitions. However, the acquisition of manufacturing capability in and of itself does not create additional value. An operations-oriented management must be able to use its resources to create value by generating return on investment. However, this concept is foreign to the current management that is TOTALLY oriented toward financing activities. Especially if it succeeds in acquiring manufacturing capability, the plants must be tooled with significant additional investment, all of which will occur at shareholder's expense, to introduce new and innovative products. About delisting, Parrella knows that it will occur. Therefore, he places the best face upon it so that shareholders will not shed their holdings en masse. That is why he says that it will not matter and that the share price "will not miss a beat." However, to believe this is to ignore the obvious: Nasdaq shares trade at a premium because of their liquidity. Significance of the new turbo chip? The company has a long history of abortive efforts in multiple industries, markets, segments, etc., such as: Noise cancellation headsets for pilots, consumers, industrial users, first-class cabins, MRI patients, telephone operators, internet telephony, etc. Feeder bowl noise cancellation HVAC noise cancellation Closed circuit communications Microphones Engineering services on and on and on A better vertically integrated competitor will probably acquire or duplicate the technology and turn a dime. Meanwhile, once NCT uses its new baby to obtain new financing, it will turn to the next hot technology and keep doing so as long as it survives. Most companies do not operate debt-free, like NCT. While debtors would never expect to obtain outrageous returns on their investment (i.e. more than 18% per annum), they would definitely not put up with the dilution. Debt-free status has kept the doors open at NCT all these years. They keep paying their debts with new equity--even their rent! However, if the acquisition targets have debt, then NCT would somehow have to convert it all to equity (i.e. dilution). Debtors would refuse!!! There is a tough negotiation.