Replies to post #39221 on Rim Semiconductor Company (fka RSMI)

[halston]

You are spinning the hell out of the 3 bogus funding packages nvei/rsmi has received.. all 3 caused massive dilution and produced nothing...

how the heck do you spin zero results into a positive????
what a joke

[spokeshave]

427: Re: 1) Control, control, control. Look at the % of Ikanos that is owned by the VC's. Control drastically reduces their definition of risk.

I have looked at the % of Ikanos that is owned by VCs. Pre-IPO, the VCs owned about 55%. Post-IPO, they own about 40%.

Now, compare that to RIM. Since the end of FY04, RIM/NVEI has given away approximately 80 million shares, or roughly 55% of the company for practically no value. 40% of the company was given away in the recent financing package alone.

2) Far less regulations governing private companies, which gives the investors far more flexibility and control.

Irrelevant. VCs don't typically care that public companies are more regulated. They see it as a fair trade for liquidity.

3) The underlying costs are generally less to run the company because of the legal and compliance costs among other things. This increases potential profitability.

Bull. This is a ludicrous argument. Compared to the cost of producing a semiconductor, the costs of being a public company are a mere drop in the bucket.

I must admit that you made an admirable attempt to deflect the question, but you did not answer it. Public companies with marketable products obtain funding all the time. A public company - even one with a poor balance sheet - that claims to have the best broadband technology in the world should have money beating down the door. Shoot - even a local company (IPIX) that is almost as badly managed as RINVEI has managed to raise many times what RINVEI has raised even though they have a mediocre product at best.

You continue to make excuses...