There's been a lot of speculation about potential modem sales.
These sales of single-chip modems, wether they be for notebooks or PC motherboards, could indeed boost earnings. And in the short term, this could boost the stock price.
But frankly, I could care less. It's not the current earnings, but rather the potentially huge future earnings which attract me to Data Race. Data Race has correctly identified a very lucrative and very large market. And this market, telecommuting, will explode in coming years for one very simple reason: it saves companies money.
So it seems Data Race is in the right place, at the right time, with the right product. Clearly, Data Race a concept stock, in the same veign as Iomega or Netscape. But currently RACE is valued as a PC modem maker (and even then it's undervalued) -- This is an incredible opportunity for small investors. Furthermore, the value of Data Race's solution is in software and integration, not simply the hardware components. Therefore, we should expect margins to be much higher than in the modem business. For these reasons, RACE is incredibly undervalued.
OK, you say, "I agree that telecommuting is a very exciting market, but why should I invest in Data Race?"
** They have a lead over their competitors.
** They are working closely with large customers to develop the solutions corporations need.
** They have the modem experience AND the multiplexor/LAN experience to develop a quality product.
** Their stock is undervalued.
** Their market cap is small.
This one's a no-brainer.
John Evans
|
