OK, I'm trying to calm down a bit. Here's some more fun with numbers:
For the first six months, CSCC received approx $721,000 in revenues. In the past three months, they received $85,000 in revenues. Apparently, as of this moment, they are not even trying to sell any product.
So let's see what's up in the BatCave--what could engineering be working on? They spent $148,000 on that. That couldn't possibly be the salary plus equipment of more than five engineers... my God, what could the other 27 people in the company be doing??? Other than spending the $900K in Selling, General and Administrative, I suppose. For SG&A, just call it 11x revenue. "Eleven times revenues!!" Really? Yup... hope not too much of that was spent on selling... spend eleven dollars to get one dollar in revenue?
So anyway, they have these five engineers working their hearts out... on what, exactly? Apparently, WeCanTalk 3.0, which we haven't heard much about, but I'm sure it'll be big, Big, BIG!! Perhaps it will even repeat the enormous success of WeCanTalk 1.0, and iConference, and TeenChat!
Wait a sec... what do you want to bet that a significant chunk of the $148K "Research and engineering" is actually the cost of licensing the INTC technology?? That ain't free... maybe they have even fewer than 5 engineers! Wow, what an engineering powerhouse this must be! Or maybe they haven't exactly attracted top talent, and have more than five engineers, who are paid substantially below the going rate??? In any event, suffice it to say that it's not exactly a brain-trust hiding out in the Bat Cave.
Hey, wait: this is very strange--shareholder's equity of $9,875K. This company paid off all their bank debt (because the bank refused to continue to allow CSCC to owe them any money--LOL), and they supposedly have cash of $20M and a "clean balance sheet", yet the shareholder's equity is under $10M (or about $2 per share, by coincidence the same price I'll start to cover my short)?? That's a little off; apparently, in my exhuberance I've forgotten the details in their recent spat of toxic financing. I'll have to go back to my notes and see what's exactly the nature of their debt (listed on the books at $6M, but it's not bank debt--they can't find a bank!!)
So let me dredge up the horrible past of CSCC financing to remind myself, and I'll post more tomorrow and we'll see what the state of their liabilities is really like.
Jeez, their complete failure to sell anything is beyond my wildest hopes!!
More tomorrow,
-- Pete |
