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Strategies & Market Trends : Value Investing

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To: Q. who wrote (8811)10/29/1999 8:50:00 PM
From: Bob Rudd  Read Replies (1) of 78748
 
Ñ ISTN 'DEFERRED CONTRACT REVENUE' That one caught my eye too. My best understanding is that they set up a reserve to cover claims against the warrantees and this deferred revenue is that reserve. I believe they've played it pretty conservatively so far. One check on accruals is cash flow from operations. Here's a $26 million market cap that's on track to generate nearly $13 million CFO this year.
Oh, and they not only sell cars on the web...they sell the warranties too [the main biz]... warrantydirect.com
This web stuff, if it gets noticed, could be a catalyst.
bob
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