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Author: Jestme Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 21  
Subject: Woof! Date: 12/8/1999 12:33 AM
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I've been holding on to this stock for about a year now and nothing. I mean, nothing. I know, hold long. But let's look at this stock before we call it a dog...

(from last 10Q)
Revenues -30%
Gross Margins 5.2%
Cash Holding 338%
Accounts Receivable went from 117,579,000 to NOTHING
Long term debt -75%

This is good and bad news. Revenues are down which means their service is not desired. Gross margin is pitiful meaning it is costing them alot to supply their service.
HOWEVER, they totally eliminated accounts receivables (this is an unaudited report, though), they put a substantial debt in their long term debt and made a very impressive jump in overall cash and cash equivalents.
Major shareholders include Vanguard, Barclays, Schwab, Bear Stearns.

So how does it compare to the industry?
Growth rate -3.15% vs industry 21.39% !!!!

There are some indicators that management effectiveness is better than industry.

So, what do we do. There are certainly indicators that point to a healthy company, but realize that much of the increase in cash and decrease in debt is from the sale of a subsidiary for $21 million, so that is fairly moot.
The numbers indicate a service that isn't desired in a company that isn't all that healthy to begin with.
I would love to be wrong about them and watch this baby take off, but I obviously have reservations. Time to cut the losses and leave.
Anyone know anything differently, or have a different take on the numbers?

Fool on
Jestme
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