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Message: RE: What I don`t get....?? -- iam/John/Frank/ OZ

RE: What I don`t get....?? -- iam/John/Frank/ OZ

posted on Oct 10, 2005 10:59AM

When I checked Yahoo Finance and they didn`t show much. The June prospectus showed options, but we have no way of knowing how many, if any, shares are owned by the ``Big 4 or so`` in private accounts. I was spouting from memory -- a suspect activity -- but believe the management staff once owned ``enough to count.``

Agreed that insider buying would show confidence, but Atul, RP and FF do have a pile of outstanding options as an incentive. Should they actually sell something that increases the pps, they would reap the rewards.

I remember when Bill Gates was selling tons of MSFT and the market reacted. He had to issue a press release to state he was diversifing at the advice of his financial advisor. We should be so darn lucky!lol

Still hoping ole Fred gets off his arse and sells something to somebody. Maybe we`ll get some level of verifiable insight in the coming financial update. ``Soons`` and ``expects`` just leave anyone with a sense of history very empty. Either way, it will be all about the numbers for the foreseeable future.

Is the $1.6M a sustainable Q number? That would be around $6.4M for fiscal `06, but probably not black ink with ~25% margins and $200K / month burn rate....leaves `em about $800K short. Either their margins need to be in mid 30s, or their SG & A needs further reduction (that means personal cuts at a minimum), or they need to have about $9.5M in revs to see ~breakeven. RP did mention the ``new focus`` on direct sales to closed end systems would generate higher margins. Of course, he probably used a few ``expects`` in there to cover his arse in case ole Fred comes up with nuttin`. This we KNOW as RP Speak. The numbers look good, we will get less of it. If the numbers look bad going forward, EXPECT to see many SOONS.

John

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