Thoughts on GOJO financials: I'm very long on CTXS and lately all the CTXS messg boards have turned
into "GOJO lawsuit/competition" boards. Not to mention that GOJO's
being bid up on the Linux train, so I decided to check it out.
Yahoo! Finance ticker mentions revenue increased 63% (for 9 mos ending
Sep). Yet for this same third quarter, revenue increased 228% to $1.1
million. This was also a 55.5% sequential increase from the Q2 revenue
of $707,400.
Here's the odd part of their financial statements: Depreciation and
amortization for the quarter increased 5833% (whoah, I wonder if my
calculation is correct!) to $2,473,900 from $41,700. looks like that's
from the corel jbridge acquisition.
When analyzing tech stocks, analysts often add back in non-cash charges
like A&D when calculating valuations. So, the bottom line is this:
1) keep in mind that, of the total operating loss of ($5,697,500) that
43% of that was A&D non-cash charges.
2) Despite the "63% growth" figure, revenue growth is actually
accelerating, 228% Q3 year-over-year, and 55.5% sequentially over Q2.
I don't see why everyone is frenetically bidding up CORL to these
levels. Cowpland can't deliver on his bold promises. Plus, his insider
trading charges, and conspicuous consumption (I read an article about
him spending a gazillion dollars sprucing up his personal mansion, this
ain't no spendthrift-conscious Jeff Bezos). As for GOJO, I wouldn't
recommend a small-cap stock that's only been listed for one quarter,
and on the small-cap listing at that. But if you want to suicidally
jump onto the Linux bandwagon, GOJO may be a better play than CORL,
even if CORL does own 1/5th of it. GOJO is not merely tethered to
Linux, but also is a play on the booming ASP market (91% per annum
growth according to IDC), which may reach $6 B by 2001, according to
Forrester. Both of them are stratospherically valued, though. So I'm
sticking with CTXS and USIX instead of SCOC or GOJO as my preferred ASP
play, until I can convince myself that the latter two can may headway
against CTXS.
- Netconductor.com |
