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Re: None

Thursday, 05/23/2002 11:37:07 PM

Thursday, May 23, 2002 11:37:07 PM

Post# of 352
I never figured an increase in shares...

A R/S would have been much more appealing....It seems that an equity stake from a collaboration partner took on a different fold..My guess that they (FONX) could not line themselves with an equity stake from MFST,INTC and such, is probably due to many of these companies and it already has been shown that their inhouse comes first and investments in other companies has been put on hold.Primary reason is E/R for most corporations are down,thus for the lack of VC to beef up their investment portfolios for acquisition targets are set back.....Also the company figures E/R will most likely be dismal at best for the remaining 2002 and going into 2003.

These extra shares will most definitely put much dilution and drag this share price down...keep your eye on E/R,which in all practical sense will only be around 1 million dollars this year and if shares are moved into the retail market,even though Market Cap stays the same your PPS will reflect this present Cap at 50- 62 million dollars,what the technology is worth....

Most should have gotten out and will be able to move back in at a much lower PPS..Regardless what many here say this is much more of a risk then ever before...With these additional shares,now making a total of 800 million shares on the books makes this company even more ripe for a R/S down the road......

Now,here is another theory on these extra shares..With 300 million shares about to be authorized makes this a nice attempt for an equity partner to come in a take a majority stake in the company...I doubt this is their (fonx ) plan since a R/S and a reissue would have accomplished the same result...

These newly issued shares or about to be issued is not a good thing for present shareholders and I disagree that this is and just a start for better things to come...

They are setting themselves up for a R/S,it should've been done,but treading water in the land of OZ is a normal practice and as always,at shareholders expense....

A 1.00 per share or even .30 is never going to be an achievable objective,not under this new share structure....





Have a good day...






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