OT ---
From the Cramer article you referenced:
No, there is no irony in investing. Just common sense. In times of turmoil the market values safety and caution and predictability more than it values momentum. It always has. It always will.
I felt bad for Mike. Somehow I envisioned this perfect world for him and his colleagues where Philip Morris goes to the Nazzdaq, adds the word Network to the title, and starts trading in 16 points increments to please the momentum folks.
Let's consider for a moment the term hypocrite:
"One who affects virtues or qualities he does not have. Dissembler. . ."
One of those company's Cramer's currently making fun of should be his own --- TheStreet.com.
finance.yahoo.com
Besides the share price falling, their losses are mounting:
biz.yahoo.com
Check out TSCM's balance sheet when they filed their S-1:
freeedgar.com
That's $4 million in revenues and $16 million accumulated losses. Not exactly the kind of company Mr. Cramer or anyone else in his or her right mind would recommend investing in --- at least based on his current anti-momentum cant.
Forbes also notes some significant discrepancies between what Mr. Cramer says and what TSCM does:
biz.yahoo.com
Checking the last quarterly report, I noticed only y/y comparisons were given, so I checked the quarter before for sequential numbers. While the September numbers increased over the year earlier, they decreased from the preceding quarter.
First the September Quarter:
Net Revenues
Advertising & E-Commerce Revenues. Advertising and e-commerce revenues are derived from Internet sponsorship arrangements and from the delivery of banner and e-mail advertisements, as well as from conference sponsorships. Advertising and e-commerce revenues increased to $3,722,267 for the three months ended September 30, 2000, as compared to $2,141,675 for the three months ended September 30, 1999. . . .
Subscription revenues are derived from annual and monthly subscriptions. Subscription revenues increased to $2,111,364 for the three months ended September 30, 2000, as compared to $1,350,937 for the three months ended September 30, 1999.
July Quarter:
Advertising & E-Commerce Revenues. Advertising and e-commerce revenues are derived from Internet sponsorship arrangements and from the delivery of banner and e-mail advertisements, as well as from conference sponsorships. Advertising and e-commerce revenues increased to $4,610,202 for the three months ended June 30, 2000, as compared to $1,740,440 for the three months ended June 30, 1999.. . .
Subscription Revenues. Subscription revenues are derived from annual and monthly subscriptions. Subscription revenues increased to $2,127,411 for the three months ended June 30, 2000, as compared to $934,219 for the three months ended June 30, 1999. <<<<<
From their latest 10-K:
As of September 30, 2000, we had an accumulated deficit of $85.0 million. We have not achieved profitability and expect to continue to incur net losses in 2000 and subsequent fiscal periods. We expect to continue to incur significant operating expenses and, as a result, will need to generate significant revenues to achieve profitability, which may not occur. Even if we do achieve profitability, we may be unable to sustain or increase profitability on a quarterly or annual basis in the future. We recently announced that we expect our U.S. operations to become EBITDA-positive beginning in the second half of 2001, but we cannot guarantee that this will happen. EBITDA is a measure of earnings before interest, taxes, depreciation or amortization are taken into account. If we are unable to achieve EBITDA-positive results beginning in the second half of 2001, the price of our common stock may decrease.
I don’t mean to pick a fight with Mr. Cramer, but he does have a lot of crust making fun of momentum guys who want to go on the Nasdaq and “start in 16 point increments . . ..” His hedge fund may have made money in 2000, but TSCM shareholders have lost their shirts.
Pat |
