CoSine Communications, Inc. (COSN)

   ICE COLD NOTES

This is a slightly different type of Hidden Treasure compared to what we normally feature, but we think it is worth a look.

CoSine Communications, Inc. does not have significant operations. Why would a company with no operations be worth a look? The current market cap of the company is about $25M and the company currently has roughly $23M in cash meaning it trades about 1 times cash. Steel Partners, who is a $4 Billion Activist Hedge Fund, owns a significant position in the company with an average cost of $2.25. Lastly we hear the company has a $207M NOL** which translates to about $20 per share. With the amount of deals a company like Steel Partners is involved in, it is likely that COSN could find a candidate soon.

**For those of you not aware an NOL stands for Net Operating Loss. This means that for given years the company’s deductions were more than the income. This loss can be carried back or what we believe would be done in this case is carried forward meaning the company will be able to offset the tax consequences of future business with the NOL.

   PROFILE

CoSine Communications, Inc. does not have significant operations. It intends to identify and acquire one or more new business operations. Previously, CoSine Communications provided customer support services for a communications platform, known as IP service delivery platform, under contract by a third party. The company was founded in 1997 and is based in Los Gatos, California.

   MANAGEMENT

Mr. Terry R. Gibson - Chief Exec. Officer, Pres, Chief Financial Officer, Principal Accounting Officer, Sec.

   COMPANY CONTACT INFORMATION

CoSine Communications, Inc.
61 East Main Street, Suite B
Los Gatos, CA 95031 Phone: 408-399-6494
Fax: 408-399-6491
Web Site: CoSinecom.com