Recent

% | $
Quotes you view appear here for quick access.

Minorplanet Systems USA, (MNPQC) Message Board

  • dixoncider1 dixoncider1 Feb 16, 2000 6:52 PM Flag

    short got balls

    looks to me like more up side to this one.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Shortstopper, I agree with your assessment of
      Dart's OmniTracs purchase. Doesn't mean anything one way
      or another for Trackware.

      Of course, Dart is
      also considering using Qualcomm's and Terion's trailer
      tracking products, so the Dart test announcement by HWYM
      didn't really mean anything one way or another to begin
      with. When the deal is closed, that's when it there
      will be some small news worth paying attention to
      (although Dart is peanuts in the grand scheme)

      In
      regards to Qualcomm acquiring HighwayMaster for the tax
      loss carry forward, that's pretty far fetched. The
      high-yield debt assumption would more than kill any tax
      benefit, and make the acquisition dilutive. Not the thing
      that a company with a high flying stock is going to do
      unless there are strong strategic benefits.

      What
      would be the strategic benefit? Qualcomm has already
      eaten HighwayMaster's 5000 lunch, is introducing a
      complementary CDMA cellular based product this spring
      (OmniExpress), and there would be anti-trust questions.


      You have some other thoughts there I'm sure beyond
      tax benefits. Please elaborate.

    • This has to play into hwym hands because companies will have to manage their fleets keeping fuel costs in mind.GO HWYM LONG.

    • Man, you're speaking my mind. It's an
      rational
      rumor. HWYM will complement QCOM extremely well in this
      tracking business. QCOM's stock has been appreciating
      wildly last year and snatching HWYM would be effortless
      for this big monster. HWYM has strong customer base
      and a good team. My concern is I don't want to hold
      QCOM stock and may have to cash my HWYM shares if QCOM
      make a bid for this good company before I see $20.
      Dart with 1000 units is so small. It wouldn't make or
      break HWYM future. As a matter of fact, it is better
      for HWYM that Dart went with QCOM so HWYM can focus
      their resource to deliver for SBC this year (28K
      units). More solid business will follow, IMHO.

    • Todays volume was third highest in last 12
      months. I didn't check farther back than that.

      We
      need a 2 million volume day to truly get the breakout
      to 12 again. This would also provide another level
      of support.

      Heavy stuff always seems to be in
      the morning.

      Heres hoping for a good morning
      tomorrow.

      • 1 Reply to Vegas_GrandPa
      • HighwayMaster still needs to restructure some
        time soon. Anyone who looks at the numbers can see
        this, and Mike Smith has been open about it. The
        balance sheet is highly leveraged and the interest
        payments on the debt are $1M per month.

        The sooner
        the restructure the better, because the closer to
        cash run out, the worse the terms.

        Stock price
        is very important, because if the stock keeps
        running (especially above SBC's $14 conversion point),
        HighwayMaster might be able to private place common stock,
        convertible preferred stock, or convertible debt and use it
        to reduce the high-yield debt load.

        Without
        a strong stock price, HighwayMaster will have a
        hard time raising any new money at reasonable terms
        due to the debt load risk.

        So, keep it going
        up, and there will be a double benefit: the
        fundamentals will get better after restructuring, helping the
        stock keep going further despite the dilution.


        When the debt load is no longer a threat, only
        strength will be left.