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Technology Stocks : Phone.com [PHCM]

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To: Don Roberts who wrote (645)10/22/1999 6:40:00 AM
From: Ron McKinnon  Read Replies (1) of 1080
 
Spin

ok, let's admit that these days no one really cares about fundamentals; just stock movement
and this one has it in spades

but, just for fun, let's look at last nights "earnings" report in two ways

Company Report:
Revenues increased 600% from last years quarter
EPS decreased from a loss of .71 a share to only .16 and beat estimates
we are spending your money to build the business
stockholders equity is $87.6mm

Alternative report:
Sequential revenues tanked from 70% growth last quarter to only 25% in this one
Our loss increased from $4.3mm to $6.3mm but because we increased the number of shares 6 times from 5.5mm to 31.0mm the loss per share looks much lower
Deferred revenues stayed flat so whatever we were doing to generate revenues in the past has now stopped
The money we are spending is generating $1.00 in gross profit for each $1.37 we spent, so if we spend a lot more we can really increases our losses
Your book equity is a wopping $2.83 for our $250 stock price

Happy trading
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