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Technology Stocks : Alphanet Telecom, WOW ! -- Ignore unavailable to you. Want to Upgrade?

To: Tony O who wrote (112)	11/6/1998 8:33:00 PM
From: wynn quon	Respond to of 117

I would discount a takeover possibility. Usually takeovers happen because of either the technology a company possesses or because it will bring the buyer an established customer base. Unfortunately, Alphanet has neither. Its technology is proprietary voice-over-frame-relay and it hasn't built up a significant customer base. Their latest stock offering resulted in a cash infusion of $20M as you said. But they seem to be burning through it pretty quickly. They did not publish a cash flow statement in their quarterly results but the magnitude of the Net Loss of $10M in US dollars doesn't bode well. Caveat: I have a short position so there may be a negative bias to my opinion. Good luck.