SME(svcdq) has it bottomed out yet? Or will it hit bottom? Message Board

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Non-Tech : SME(svcdq) has it bottomed out yet? Or will it hit bottom?

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To: Arthur Tang who wrote (251)	1/24/2000 4:34:00 PM
From: Arthur Tang	Read Replies (1) of 305

Today, the SVCDQ market was quiet. No gloom or doom. The situation is totally unknown since the company did not release adequate information on their cash position nor their cash flow amount. Spring merchandise is being arranged in stores, how this year will fare against last year's performance is also unknown. The chapter 11 situation does not require much reporting to the trustee of the court in a DIP operation. However, SMC has an angel in Citibank and Salomon smith barney. We hope that they will look at the assets involved and maximize the value and bring SMC out of chapter 11 rather sooner than later. Money raised from assets spun off, may be quite profitable. Which may lower interest payments. Tax loss carry over is beneficial because of substantial accumulation over the last several years. Operating income will depend on traffic and gross margins of catalog items. Overhead has to be reduced. How soon and how much will have to be figured out? Assuming each store is profitable and can carry the corporate overhead, we will have a revived company.

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