Rich, that was one of the "exchanges" reported on this thread which indeed confused me. Capital expenditure have very little impact on being in the black or red (only to the extent it impacts increase in depreciation, and they cannot depreciate until equipment is actually put in service, see the big MU white elephant at Lehi), thus that "connection" IMHO was a "divertive answer" (you answer a question that was not asked).
Furthermore, the numbers themselves bother me. Late last year and early this year the thread was awash with information indicating that VLNC has made big, very big, buys of raw materials, but it does not show yet in the numbers because of time differentials between buying and paying. Well, by now it should be paid and recorded somewhere and also show as an increase in burn rate. No such evidence in the raw numbers that I could find. Finally, if memory serves, Lev himself said either in the last CC or at the meeting few months back that we will all know they are ready to ship when we see the burn rate increase. Well, there was no such increase. All these are in stark contradiction to the "mood" of joviality and "everything is on plan" that apparently those that listened to the CC reported on the thread. I find this contradiction puzzling and further enhancing my position of "Clear and Present Danger". The reality of the number reported is not in concordance with that CC. Maybe that is why the CC was pulled off the record?
Zeev |
