VISG - another OSTK deal ?

Discussion in 'Stocks' started by syswizard, Oct 6, 2005.


    Check out both the price action past few months as well as today's OBVIOUSLY ENGINEERED short-covering rally.
    These profit-poor tech companies are really out to get the short hedgies that are driving their stock to the poor house.
    This is war ! Their only weapon is news....and VISG waited until the stock price got trashed yesterday to bring it on. Bogus....and I see no profits either.

    The VISG CEO should join the
    "Patrick Byrne I can't make a decent Profit but I'll Kill the Shorts" club. Any other candidates out there ? Could profitless XMSR be next ?
  2. VISG received a $100 million dollar investment lead by former L-3 Communications (LLL) CEO, Robert LaPenta.
    I hardly would call that a bogus deal as you say.

    LaPenta is a very smart chap.
    He took a company with about $600 million in revenues with Frank Lanza at L-3 and built it into a defense electronics powerhouse that now generates over $ 8 billion in revenues.

    If LaPenta is making this kind of investment via his L-1 Partnership, you can bet that there is a substantial business plan with significant management in place to execute such a plan at VISG with LaPenta and his L-1 Investment Partnership. You are only kidding yourself if you think that this is some sort of a conspiracy. He obviously sees something of value in VISG to be purchasing $100 million dollars worth of VISG shares at $5.25

    By the way, L-3 (LLL) is an incredible company.
    Do yourself a favor and listen to their upcoming CC.

    Probably a great buy right about here in the $78.00 area.
    Looking for $4.85 in earnings for 2006. My family has owned a core 5 figure size position since their IPO back in '98
  3. I don't know...the whole thing seems similar to Mel Karmazon's hyping of his beloved SIRI stock. In the end, even smart guys can't move the market or economy. Ed Zander was a really smart guy at SUNW (see 5 year stock chart).....did he get smarter or lucky when he went to Motorola ?
    Hmmm....we'll see.
  4. I think that you need to speak specifically about the value of the business that VISG is in.
    In the meantime, LaPenta's track record speaks for itself.

    Given the fact that LLL's business plan is one of an accretive acquisition strategy, it would not be uncommon for LaPenta to grow the product lines of VISG in the identification/security business and then sell the company out to a larger defense contractor several years out.

    Look at the macro worldwide need for security identification given the current environment.
    Its really a no-brainer.

    As for actual specifics of the "L-1 Investment Partnership" deal with VISG, notice that there is also an opportunity for warrants to be purchased to the tune of 4 million shares at $5.50 per share which will vest if Visage achieves certain goals.

    Says LaPenta:

    "We're in the envious position of having the capital and the management resources to pick and choose the best properties and use our platform to build what we believe will be a world leader in identity solutions," LaPenta told Reuters.

    Sounds very similar to how he and Frank Lanza started L-3.