VCST: ViewCast.com -> RNWK G2 encoder hardware Message Board

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Technology Stocks : VCST: ViewCast.com -> RNWK G2 encoder hardware

VCST 0.000200

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Jun 6 9:33 AM EST

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To: Jon Stept who wrote (483)	10/22/1999 1:05:00 PM
From: Jan A. Van Hummel	Read Replies (2) of 544

A friend of mine thought VCST might offer an opportunity so did my DD. It may be the right technology but I am not sure abt the company. A first red flag is that earlier this year while he was hyping the stock on WS, Jobe (and Norem and Leftwich) were aggressively selling. At the same time the company was experiencing some real bloodletting. They are no longer there. On 10/14 the company announced that 3rd qtr will see a drop greater than 50 % in revenues. Using crude numbers based on earlier quarters and assuming no dramatic change in R&D and GSA, I figure the 3rd qtr could look like this (in millions $): Sales 1.05 (or less) Gross Margin 0.50 (at 48 % of Revenues) R&D (0.80) SGA (1.70) Loss (2.0) IMO a loss of $2 million is a best case scenario for the 3rd qtr. In an earlier filing VCST stated having enough working capital to last till the end of the year. Book value is $0.87/share. Something will have to give because if they continue this way they will be technically bankrupt pretty soon unless they'll find someone to fund it a little longer. Actually, this could have been a good stock to short earlier on, but as it stands I think I abstain. JMHO

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