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Interesting... they have used the shares to finance the companies operations and to aquire necessary technology, some of which has been pivotal in landing some of the revenue producing deals to date... but your advice as to how to go about funding these events would be to do exactly what instead?
Seems to me that you are not even a shareholder but someone who is simply here to raise "concerns" and spread fear & doubt based either on your own agenda or for compensation.
If either of those scenarios are incorrect then you're just another long suffering temporary losses without the grace to do so with dignity or class (not to mention patience)
You'll all be able to finally stop bitching about the qtig shares shortly eom... it was always meaningless anyway and will mean nothing once it is complete. What has and does matter are the recording label contracts... everything else is simply dark noise
promo only
Qtrly
With MediaMax5 there is no longer any "shift-key" issue, regardless of how trumped up and bogus that was to begin with... SHIFT-KEY NO MORE
Darknoise is tooling along in development with Sunncomm getting an even better deal on the technology thanks to the delay's in solving the last 10% of the technology hurdles
Major labels tba shortly
I think you have it all wrong... Peter and crew developed the correct technolgy and it's no accident. Macovision with all of their milllions and tons of employees was unable to do what Sunncmm has done to date and with no money. IMO that's damn impressive.
Personally I wish they had never gone the QTIG route but as I understand it the original idea was to use QTIG (since it's already fully reporting) to be able to validate the earnings Sunncomm was getting. Along the way, one of the numerous "changes" someone thought distributing it to shareholders might be a swell way to cause shorts to cover... doesn't look as if the threat has anyone too scared at the moment.
Simple is usually better on Wall Street. All of the convolutions that Sunncomm is putting itself through merely detract from the rest of the package and cause Wall Street to cast a jaundiced eye when they look in our direction.
Anyway, as I presently understand it they have filed the SB2 already, so much of this discussion is rather mute as the distribution appears to be in progress.
What I am really interested in is the revenues, (record labels) because without them, we have nothing but empty dreams.
If they distributed the QTIG shares tommorrow, there would be zero difference in the pps in my opinion.
Your earlier post came across as "whining"... perhaps I mis-read it. At any rate, I don't disagree with anything you posted. It's time for Sunncomm to grow up and behave like a real company.
As for the investment community... they are presently ignoring us as we are not on a real exchange, but you are correct that if they were looking at us they would not play here until they could see some transparency in what management says vs what they do... that's just how the game is played.
Since I know Peter and have great respect for him and what he has accomplished to date against seemingly impossible odds, I suppose I tend to cut him more of a break on some of these detail issues.
The dilution was inevitable frankly... with zero revenues how do you keep paying the bills as well as aquire new technology? You issue stock and sell it. The shorts know this as well and also know that the lower the pps is the more dilution there will be each time they have to do this... it's referred to as a "death spiral" and is a well known technique that short hedge funds use to assist them in driving the price down.
The shorts are real... whether you believe in them or not.
The SEC is too busy protecting criminals in the system to care much what Sunncomm is doing. The only time I could see them getting involved here is if we actually came up with a way to hurt the shorts... then you can bet they would be here in a flash to defend the right of non-regulated hedge funds to defraud shareholders.
Honestly, while Peter may have come up short on a few items over the last year it is not he who controls the pps but rather the hedge funds.
For the record I have not been here for 4 years like you, so my patience meter is probably a lot higher. I first came in around the .07 level before it ran to .40 cents for a nanosencond, whenever that was.
Now that Sunncomm is finally achieving success in the market place (and they are), Sunncomm's lawyers are telling Peter to say very little to individual shareholders. If you have ever spoken directly to Peter, he is the essence of a promoter, in th ebest sense of that word and a very necessary trait/skill for what he has had to try and achieve.
For those of you that are used to calling Peter every time the stock dips .005 cents I think you will find a new attitude and a less available Peter... don't take that as a negative, it's a good thing... it means he's too busy moving Sunncomm forward to hold shareholders hands over every move of the stock.
As to Apple... BMG represents some 30% of the music they sell online. The agreement between Apple and BMG just came up recnetly and what do you suppose BMG insisted upon? So it is not going to take any more labels than we already have... I predict before December we will have a formal agreement in place with iTunes.
Darknoise works. Basically the idea is to place two analog audio signals out of phase by 180 degrees, within the actual music. As long as nothing is done to the music, the two sound waves can not be heard, but if the codec is altered or compressed, then the streams fall out of phase and are suddenly very intrusive. The issue right now is making this work at high enough fidelity levels to simply not be heard by even the pickiest of audiophiles. Peter believes they can solve this and Eric, our tech guy, told me it was a solvable issue.
You are right that there are a lot of loose ends to take care of and everyone should be aware that it's going to take some time. I plan to hold this for several years barring some unexpected meteoric rise in pps.
You are also correct about the issue of non-reporting and pink sheet... no major institutional money is going to support our stock until these issues are solved and in this environment the hedge funds know they control the pps because the have the financial clout to crush anyone who opposes them... ie they are in control. That will change when we have revenues and are on the Amex sometime next year.
Again, I don't completely disagree with you, I simply was pointing out the difference between himself and a ratioanl investor such as yourself who, from your post, understands that there remains great potential here and that this isn't a "widows & orphans " stock.
From his comments he is not mentally suited to be invested in a stock like this and can no doubt, in this regulatory environment, sue his broker for either suggesting this investment or allowing him to buy it at all, and recover all of his money.
He could also have doubled down to lower his cost basis but he'd rather play the victim role... this is pretty classic investing behaviour and always accompanies someone who loses their shirt in the markets... I've seen it all to frequently.
Sunncomm does have issues... that's why it's still a pink sheet non-reporting company. All of that is about to change but to continue to harp on Peter as some evil genius that is destroying shareholder equity is to simply be ignoring reality.
We have BMG already and in a very big way.. that was made clear at the shareholders meeting in case you wern't there. It doesn't take a lot of imagination either to see that BMG is merging with Sony Music... so guess who we automatically get?
We will also get Apple because BMG is not going to continue to allow Apple or any other pay music service, to sell unprotected versions of the very music that BMG is paying Sunncomm already to protect.. ain't gonna happen.
We have EMI... you can chose to take the "promo albums" stuff as a nothing or realize that this is the same "get comfortable with the technology" first step that BMG did prior to embracing the technology.
Sunncomm has been struggling to get the naked shorting out of the way for over a year and they have entertained some creative ways of trying to do so... none of which have worked to date btw. This has called for some pretty creative strategies and much of it has evolved (changed) over time. This is probably reasonable as nobody exactly knows how to get rid of naked shorts besides the obvious development of a real company with revenues...
Sunncomm is now so busy with revenue producing deals that they no longer have time to worry about naked shorters... in the end the problem will resolve itself, but this will take time and require investors to have patience. I was in MSFT for nearly 10 years... I have a lot of patience and a lot of money thanks to the stock market. I'm seldom the brightest guy or the one who has the lowest cost basis or sells at the top but I've had some incredible homeruns simply by being patient enough to wait for big technology to develop... Sunncomm and the copy-protection stuff is big technology.
If Sunncomm can nail down DarkNoise and get it to work to industry standards, then we have the holy grail and with Microsofts rabid interest in DRM, I think it's a cinch they aquire us.
Best of luck to everyone invested in Sunncomm
Sell your shares and get on with your life. You didn't buy GE, you bot a non-reporting pink sheet that by rights had zero chance of succeeding in competing with MVSN.
You also did not avail yourself of a chance to lower your cost basis dramitcally from the .40 cent level where you apparently invested your 75k.
That it takes time to develop a small company into a big one, that the company has had a serious infestation of naked shorts driving the stock price down and by the way forcing the company to dilute you as it issued more stock than would have been necessary if the pps were higher, are all points lost on you and no amount of rational discourse will change that...
You lost money that no one forced you to invest, and as you pointed out already, you had the chance to break even already and blew it. Stop pointing fingers and look in the mirror, you do not belong in speculative stocks, you have demonstrated conclusively that you have neither the stomach nor the patienc for it.
Good luck on your future investing
Stingray2,
I couldn't agree with you more... the fundamentals continue to improve at a dizzying pace. Just a year ago this company was a development dream. Now with the contracts they have signed to date, they have become a real revenue producing company.
One has to consider that MVSN with all of their clout and money has failed to gain any traction in the audio CD market and even now is rushing to try and develop a copy-cat product to Sunncomm's since CDS-300 has turned out to be a major bust of time and money.
Sunncomm with no money and zero clout is now the undisputed leader in audio CD copy-protection. This is a feat rivaling David & Goliath and the rewards will come with patience. Sunncomm is growing up quickly and still needs to accomplish a few necessary things before the pps takes off.
1) Book reportable revenues
2) Move to a real exchange
3) Reverse the hell out of the shares to obtain a reasonable capital structure
When these three items are concluded the shorting will finally stop and the company will obtain the market valuation it is due based on it's earnings.
Based on my conversations with Peter, I conservatively estimate we will be on the Amex by April of next year, after having made the necessary filings late this year (as promised).
I should also point out that once the QTIG shares are released as a dividend, shareholders will likely be dumping those. When they are selling for .02 this November, they will be the buy of a lifetime.
A short year from now, Peter Jacobs will be being hailed as a hero by those who had the patience to stay the course while the company matures and have been rewarded with 10x to 20x times their investmet in return.
No offense meant by this, but hopefully you recall this post and your words and see yourself as the petulant whiney child you were behaving like.
That's not to say I don't see the point of your frustration, but seriously, the company has come light years in an incredbly short time frame... give em the benifit of the doubt one last time and I think you'll be pleasantly surprised.
You ain't seen nothing yet and relatively soon
the shorts remain in control... and supremely confident as there is no one to challenge their rule here
Corey,
You are exactly right... the few "new" shareholders we get are not the institutional types and we haven't enough of the "new" shareholders to shake a stick at... think of it this way, who is going to actually see any good news from Sunncomm?
If you own Sunncomm then you are looking for the news, otherwise it's falling on a vacuum out there. Now if/when we announce Apple (iTunes) things may heat up some as Apple is a public company and all of their shareholders will see the news and "some" of them will be curious enough to buy a .15/.20 cent stock for grins... but they will not be buying massive numbers of shares and that's what's needed to move a float of 320 million shares... if not dbl that due to naked shorting.
We will have our day, mark my word, I'm just trying to convey that it's all going to work out over a period of time and it's unlikely we'll have some overnight TASR on our hands. As long as people's expectations are reasonable there will be a lot less dissatisfaction from days like today... and that's a lot healthier.
Existing shareholders already have as much stock (in most cases more) as they want. The only way to go higher is to bring in significant numbers of buyers at higher levels... what is going to cause THAT to happen?? Nothing is what.
As long as the stock remains on the pinks the shorts rule with impunity. They are the ones controlling the stock price, not us and they are not going to allow this to run before they cover some incredibly large short positions.
They will move on DVD significantly more quickly than you could imagine... they have the funding in place already and committments from several large labels once the technology is usable. Having said that however, I expect nothing to be reflected in the stock price until much later.
As stated several times previously, the hedge funds ploy is to discourage you... it appears to be working on most shareholders as the stratedgy is to short any good news creating the fiction that this news doesn't make any difference.
The hedge funds are aided in this ploy in everything Peter doesn't do that he says he will regardless of how reasonable it is that he hasn't yet.
They are also greatly aided because the stock continues to trade on the pinks... this means that we will receive zero institutional support that the hedge funds would normally have to contend with and tends to keep the wolves away. No institution will invest in Sunncomm until the company finds it's way to a real exchange.
I think if you have less than a year horizon, you shouldn't be invested in this stock because it's going to take about that long to fix a lot of things that need fixing. Once that is done there will be no barrier to significantly higher pps.
Unfortunately for you it doesn't much matter what drivel you post in your never ending effort to color positive events as negative because the simple, easily verifyable truth is, the record labels are embracing Sunncomm's technological solution to the major problem they face.
These labels have not done this lightly either but only after exhaustive tests, trials and consumer feedback all of which can be measured in months and years.
Good luck on your crusade but quite honestly your efforts are so transparent as to be laughable by any reasonable person.
Wonderful post
>> How does the company have the MONEY to pay for "A LOT OF PRELIMINARY LEGAL WORK <<
It's called revenues and it's the reason the stock price will eventually move a lot higher.
>> which will cause us shareholders FURTHER DILUTION and EXPENSE <<
Expense yes... though fortunately we are hiring sub-standard legal and financial help so at least we save money on them. There isn't any dilution in a dividend.
Dunno when and if the dividends will be delivered... for now I'll settle on landing OEM's with the major labels.
>> grant it that the company seems to be moving forward but how do we seperate the wheat from the shaft. Please understand, where I'm coming from. I value integrity above all else and all of you should command the same from Mr. Jacobs and his staff <<
Good lord!! You bot a non-reporting pink sheet company and you want them to be like IBM? Buy IBM if you want "integrity". As someone very familar with small companies I can tell you that a lot of lines get crossed in making it from point A to B.
>> There is no viable reason that I know of that would cause our stock to trade at .1250 after having the very best pr week in our short history. <<
Sure there is... people like you see the glass half empty. Unfortunately there are currently more of you than of me... plus some help from the non-existent shorts
I have my "sources" that are quite reliable in this case, but I hardly expect you to take my word on it... unfortunatley I can't offer you anything else... still, those numbers are accurate.
I have spoken to the SEC numerous times as well as sending lengthy correspondence... they don't want to help. Period.
I have emailed Spitzer repeatedly regarding naked shorting in general, not Sunncomm specifically... so far no answer.
The naked shorting scandal is the largest in financial history, measuring in the multi trillions in scope. It is amusing to hear people say "it doesn't exist". Sorta like saying the Earth is flat.
>> ALSO by not getting off the pinks and being a reporting company as previously stated in SEVERAL prior company press releases, there are MANY brokerage firms who WILL NOT trade in this stock, again WILL NOT buy the shares for THEIR CUSTOMERS even if directed by the customer. This issue is PARAMOUNT! <<
However, they need revenues to do this and we're finally getting them...
Good post and I couldn't agree more
That's a nice theory. However my spot checks with only three hedge funds in NYC turned up nearly 50 mill shares naked short... these aren't market makers.
Most small companies are dogged by naked shorting, so it would be odd if Sunncomm wern't as well.
Btw, I think your receipe is a good one and pretty much what they have in mind... Peter made it clear at the shareholder meeting that they intended to move in that direction once the second OEM was announced... well it has been, so it looks like another put up or shut up moment for Peter and Sunncomm.
I hope they surprise us this time.
With all due respect, I get your point and agree to some extent, but honestly I don't care very much about dividends, I care about OEM's.
It would be nice if they were more forthcoming at times, but according to Peter there are good reasons for not always being... not sure I totally buy that, but at the end of the day, I do in fact trust Peter to look out for my best interests. I don't say that lightly or as a school girl with her first crush... I've met and dealt with 100's of CEO's over the last 23 years and most of them would sell their mother's down the drain for a buck. To my satisfaction, Peter is cut from a different cloth, but tat's for each persons own comfort level to decide.
I also understand that Peter is very optimistic... you'd have to be to think you could beat giant Macrovision (which we have) with a tiny little company... and that events are fluid for a small company, hell even for a big company things change all the time. So I believe that Peter gets ahead of himself at times simply because he is excited about what he believes is about to happen... that it changes or gets delayed doesn't alter that his enthusiasm was genuine.
It's like saying "Bush lied" when the truth is he was just wrong... that intelligent people don't get the difference amazes me.
One certain sign that things are getting a lot better is that legal council has obviously told Peter to shut up and not talk so much... that's happeneing because there are finally real events that are going to matter relatively quickly.
Not saying you don't have a point and it's not difficult to sense your frustration, but I chose to see the glass half full at this juncture.
So you can spend a lot of time getting your panties in a bunch over admitedly real, but minor issues or focus on the ones that matter. Dividends have only ever been contemplated as some sort of ruse to curtail naked shorting... keep in mind however, no one has ever really been very successful at stopping it, so these attempts are somewhat hypothetical. We don't even know that it would work and imo it won't... simple is always better.
Unfortunately the reality is that Sunncomm probably has some skeletons that preclude it from being a useful vehicle to seek listing with. That's where QTIG may prove useful... I don't like the shenanagins anymore than you do, but I believe we are going in the right direction and the OEM announcements are certainly the strongest indicators of that.
Btw excellent research and presentation on this issue
The use on "promotional" CD's is the first step. These are very conservative companies that chose to walk before they run. The BMG model is a perfect example to look to to predict what comes next and as some will recall, BMG began in exactly the same manner.
The BMG/Sony deal means that withought lifting a finger we automatically get another of the big five labels and additionally we waive the getting to know you period that EMI has just entered into... with Sony we begin at full gallop.
The stock price hasn't been connected to what's going on at the company for some time now, so why is this any different today? You either select to aggressively trade all of the up's and downs hoping you time it right on each side of the trade or you buy low, show some patience and sell high.
Sunncomm is building a very real company, not a get rich stock trading scheme. There are plenty of those out there already.
The thing to ask yourself is, "what would the market reaction be if the news we are releasing was coming from Macrovision and not Sunncomm?"
Those not patient enough to see the real story here would be best off to stop whining and move on to another stock... this one is going to take some time lads.
You'll get no argument from me... the company needs to be fulling reporting and on a real exchange. This is nessary in order to obtain institutional interest that will effectively counter the naked short folks who presently rule with no opposition.
It is also necessary for investors to see a transparent situation where they feel comfortable investing.
I remain confident that we will see a significant rise in revenues in 2005, perhaps to a levels as high as 50 million, nearly half of what Macrovision generates. I believe by Christmas we will have 4 to 5 major labels signed and then it is only a question of how quickly they ramp.
As to the pr's not containing financial information, why would they? The pr's are simply alerting investors that there is now a bonafide revenue producing relationship. Neither the labels nor Sunncomm have a crystal ball and can accurately predict future revenues with enough precision so as to avoid a future lawsuit if they are wrong. This is why very few OEM announcements contain specifics regarding revenues (from any company)... it is understood there will be significant revenues from an OEM relationship with a major partner... even pink-sheet investors should be able to connect those dots.
I couldn't agree more that Sunncomm needs to be on a real exchange and I am confident that as the revenues increase, we will have the legitimacy to do so. I doubt it will be Sunncomm however as in my opinion there are simply too many skeletons there to fascilitate this process neatly... QTIG on the other hand is relatively stain free and would provide an ideal vehicle for obtaining Amex listing, though I would prefer to see Nasdaq... Amex listing requirements are substantially less.
All of this process is going to take TIME... if you came here hoping for a quick pop to several dollars, then you are going to be sadly dissapointed. If you have the fortitudr to watch while events unfold, then the odds are quite good at this juncture that you will be hansomely rewarded for your patience.
You need revenues (cash) to enable share buybacks, though I'm not so sure that's the best use of their funds. Currently they are using funds for obtaining additional intellectual property that accomplishes several important things:
1) gives them a more competitive product
2) shows the labels they are serious about updating/improving the product
3) eliminates potential competition
4) eliminates the technology from falling into Macrovision hands
MVSN from Yahoo key stats: Note they have 175mil in cash, 138mil in revenues and total shares outstanding are only 49mill... ie SCMI has nearly 10x the total shares outstanding, nearly zero cash and nearly zero revenues... on a risk basis, MVSN is clearly the winner for now.
Shares Outstanding: 49.31M
Float: 42.30M
Fiscal Year
Fiscal Year Ends: 31-Dec
Most Recent Quarter (mrq): 31-Mar-04
Profitability
Profit Margin (ttm): 24.24%
Operating Margin (ttm): 36.19%
Management Effectiveness
Return on Assets (ttm): 9.10%
Return on Equity (ttm): 10.11%
Income Statement
Revenue (ttm): 138.28M
Revenue Per Share (ttm): 2.776
Revenue Growth (lfy)³: 25.50%
Gross Profit (ttm)²: 116.90M
EBITDA (ttm): 57.28M
Net Income Avl to Common (ttm): 33.52M
Diluted EPS (ttm): 0.672
Earnings Growth (lfy)³: 145.60%
Balance Sheet
Total Cash (mrq): 175.63M
Total Cash Per Share (mrq): 3.56
Total Debt (mrq)²: 0
Total Debt/Equity (mrq): 0
Current Ratio (mrq): 5.379
Book Value Per Share (mrq): 7.264
>> Mvsn has a large lead on the rest <<
Lead on whom? CDS-300 is a bust and they know it. They are milking the DVD and software copy-protection markets and doing a great job of it, but when Sunncomm announces their DVD product, it will not be a happy day for Macrovision. Frankly I doubt they are enjoying the 4 years they have wasted in the audio CD market with no results to date... I have heard comments that MVSN may simply abandon the audio CD market and focus on their core markets.
As far as DarkNoise is concerned, we are landing the labels without it, so I hardly see it as a nessesity, but rather a secret weapon when/if deployed gives us unwuestioned technological dominance in the audio CD market and probably the DVD market as well... what good is a DVD copy if the sound doesn't work properly?
I have some contacts in the industry that did a quick check with three major hedge funds out of NYC six months ago and the total exceeded 50 million naked short... that's just the a small sampling and relatively at random and frankly I was shocked the numbers for just three firms could be so staggeringly high.
I too wish for the SEC to do something but I don't think they ever will. Their interest as they have made clear by consistent stonewalling for over two years, despite an outcry of grassroots shareholders and small companies to the contrary, is to protect the large institutions that have supported this naked shorting scandal.
I should point out that the naked short problem if resolved suddenly would have a cost to major institutions estimated to be in the trillions of dollars... the degree to which naked shorting has become an abuse and an excess would simply shock anyone. While I am generally a conservative politically, I can also see the problem in exposing this problem now right before an election. The naked shorting problem has existed through numerous administrations, both Republican and Democrat alike and they share the blame for allowing the abuses to continue.
The NASD has adopted some recent rule changes to try and curb some of the abuse from Canadian and offshore but these efforts are very weak and unlikely to have much impact despite some hype to the contrary. The SEC on the other hand has literally done nothing and the one company that is trying to opt out of the system of abuse and has appealed to the SEC for several years to help protect them, has recently filed suit against the SEC for neglgence and conspiracy to aid the systematic defrauding of small investors.
I have personaly spoken to agents of the SEC about this problem and their attitutde has universally been that they doubt there is really much of a problem except in a few cases and in any event, pink sheets companies aren't realy real companies anyway so they deserve this treatment... an amazing attitude given that their charter is to protect the small investor while the hedge funds that they enable to prey on small companies are out to destroy small companies to reap a profit. Sickening.
All securities are held bt DTCC as the clearing agent holding certificiates, only in the case of DTCC they prefer virtual certificates that they hold in "pooled" accounts... fancy verbage for the fact that they do not attach an actual cert number to individual certificates and this allows them to let hedge funds to short the SAME certificates an unlimited number of times since there is never any accounting that holds them to being able to short only a single certificate (the law)
DTCC and the SEC derive funds based on the volume of trading that is done... naked shorting vastly increases the volume and therefore the revenue to both organizations... no conflict of interest here! And these are the very organizations that are supposed to be protecting us from fraud such as this.
Actually the float is much much bigger... I just don't have any way to know exactly how big as I don't know the naked short position. I suspect the heddgies may be short as much as 300 mill shares however, which when added to your number of 320 currently in the float (about right) gives a combined total of 620 million shares... it may be even bigger.
Like it or not, the naked short shares are by nature dilutionary... it is as if the company printed each share naked short and this is only a part of the destructive nature of naked shorting.
Hey everyone is entitled to their opinion... but usually one would arrive at a belief such as this based on some sort of facts rather than from depression due to the share price not rising on good news.
Believe it or not, this is exactly the feeling the hedggies are betting on creating by pushing the price down. I am not a trader of the stock, however I can see where one could easily sell into every pop and buy back when the inevitable decline ensues... I'm guessing the bottom is 0.13 this time
450 mill
Everyone who already owns scmi, pretty much owns as much as they want... the trick to moving the stock higher then is to attract new buyers... usually with news. However, since we are a pink sheet company few news services take us seriously. If MVSN were having the success we've been having to date, you can be assured WSJ and CNBC would be all over it and therefore new buyers would be attracted.
Nevertheless, we did go to .40 cents in the last year and we were a pick sheet then as well. I believe at the time there was some short covering going on the fascilitated the move up and then was promptly shorted right back down again. My point is that pink or no, there is some overhead room for us to move... not all pinks trade at .15 cents.
Once we are on a real exchange, we can gain some institutional support and that will aid in keeping the vultures at bay... right now the only real power in this stock lies with the hedge funds and they have institutional size muscle to move the stock wherever they want to... unfortunately given the likely massive size of their collective short positions, the only direction they want the stock to go is down.
The "Shift-Key" problem is irrelevant. The J Quan release proved that there is a significant reduction in the drop off rate when using Media-Max.
The hypothetical bullshit over the shif-key is over, the current product is in the market and working beyond the labels expectations. All of the theoretical mental gymnastics and sweaty palms over "can someone defeat it" are solved when you get to the bottom line and the cost benifit outweighs the cost of using it.
DVD copy-protection from Macrovision does not work at all, you can obtain 100 free programs on the Net to enable you to rip a movie from any DVD currently protected... that hasn't stopped the labels from continuing to pay Macrovision because the realize it's still worth it.
SUNNCOMM BREAKING OUT
One record label going with Sunncomm could be a fluke, two is a trend. If you look back on the BMG deal, this is exactly how it began, with a pr to use the technology on their promo CD's, obviously in order to become comfortable with the technology before committing to more... very reasonable.
The shorts (Hedge Funds) have taken great delight at crushing shareholder enthusiasm... each time we post positive news, they hammer the stock as if to send the message that this latest news really isn't significant... but it is.
This strategy may work for the short term, in the longer term however, Sunncomm is breaking out of the box it has been in for over a year and there is not going to be any way to put the genie back in the bottle when they are done.
EMI is not the only label that has been working with Sunncomm, you could guess the others, Sony, Time Warner, Universal, Apple etc and I expect to land all of these prior to Christmas.
Sunncomm has taken a lot of hits for credibility issues, however, by this time next year we will be posting significant revenues and revenues don't lie.
LOL... I'm not predicting $1 this year, as with all things it takes longer than you might imagine. I think the ramp up with BMG Worldwide will take at least a year to be fully emplemented... remember we are talking about 750 million CD's and that's a big number.
They are soley focused on the Music CD business for the moment as they see an opportunity for a clean sweep of all of the record labels. Eventually that will change and they will attack the DVD market. I think if they had more available funds they would be going into DVD's right now.
It seems reasonable that the company can eventually ramp to 100 mill in revs, so that would be roughly 4x sales... nothing outrageous in that... with DVD's it could grow substantially over time.
>> So you think a "normal" company issues a 12.5% increase in share in 1 year!! You find that to be acceptable!Do you have your head in the ground <<
Lacking any other viable way to raise capital, the company can either burden itself with excessive debt (assuming anyone will loan them $) or sell shares... if you have a better suggestion for raising much needed capital, I'm certain corporate America would love to hear from you.
Remember, the funds are not only for paying the monthly bills but also for aquisition of new technologies such as DarkNoise. Sunncomm has been heavily shorted exactly because what they have managed to pull off is exceptionally rare. If you have been to the company and seen how they have elected to spend the money you might be willing to cut them some slack rather than complain over a small and reasonable amount of necessary dilution.