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Author: TMFTom9 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5847  
Subject: Re: Couple of questions for TMF Date: 1/8/2003 1:43 PM
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Hey going brokeiseasy:

1. I can't speak for the Rule Maker port, but for the Rule Breaker port, here's our last statement:

Not adding cash
On an entirely separate note, there was no quarterly cash infusion for Rule Breaker in October. We started adding cash in July 2001, with the stated intent to do so quarterly, and because new cash would force us to invest periodically as most people do. We've been questioning this thinking for some months but haven't reached a definite conclusion. For now, we have plenty o' cash in S&P 500 Depositary Receipts (AMEX: SPY), and more available if we covered our Sirius Satellite Radio (Nasdaq: SIRI) short. We're not convinced there are better places for the money. Yet.


We're still rethinking and are pretty certain not to be adding cash for January.

2. I think you've found a great place to ask that question! The RB companies board. We've responded to this question a number of times. I think you should ask Jeff Fischer (TMF Jeff). It was his idea. ;-) Siriusly, here's a long thread on this board where a number of people (including me and David G.) expressed their thoughts: http://boards.fool.com/Message.asp?mid=17906353

And whether "we" don't put any faith in TA or not, you are free to (what a country!). If you think it's an important indicator, by all means follow it! Whatever makes a person money is great.

3. If a short goes against you 20% or so, it may be time to examine whether it's just noise or whether anything has changed your analysis. However much I was surprised -- and I was -- by the revenue figures, a press release with sales figures and a penny increase in EPS guidance doesn't say anything about the accounts receivable and inventory situations relative to sales growth and the rate of free cash flow generation, if any.

We will just continue to test our analysis against the numbers we see. Things may not go our way. See also http://boards.fool.com/Message.asp?mid=18394718

As in all cases, investors should determine their own risk and comfort levels.

Hope that helps.

Foolishly,
Tom9
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