CCBL was mentioned on another Board and after listening to the conference call, I was preparing to buy some on Monday.
However, after further research, I share Hiram's concern about the low cash position, and high percentage of receivables at 6/25/99. I find it curious that the press release showed a complete P&L pro forma regarding both new acquisitions, and yet did not show a pro forma balance sheet .
I'm further concerned that a 1.8mm share registration statement was filed in July, and this might be an overhang on the market for some time. Also,I would guess that the Silicon Valley stock will also be registered when that merger is completed (I assume it is stock and wonder if the amount will be adjusted to reflect the reduced CCBL price), and that this too might have the potential to affect the market.
Lastly, I'm a little concerned about the concentration of sales to a few key customers which I believe constitutes over 80% to CCBL's top 10 accounts.
It appears as if new management is trying to increase shareholder value through its new strategic plan, and I would very much appreciate any insights from this Board on the above. I've had good success with my "Broadband" investments, and I would like to add CCBL to my holdings, if I can get some help on these matters.
Thanks
GMG
P.S. Hiram--Sorry I'm responding to your question with more questions. Maybe we'll both get some input from Ted or others. Since there is little debt at 6/25/99, perhaps a line of credit might help, also their current ratio is healthy at that date.. |
