Hi Steve: At this point I would not be to hasty selling if I owned
the stock which I don't, but I'm tempted to buy. Still investigating
some things. Look at this part of a press release by the mother
company.
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The Company's net loss for 1996 was $27,039,367 or $7.48 per share,
compared to the net loss in fiscal 1995 of $2,146,991 or $1.44 per share. The 1996 net loss included an aggregate of approximately $23,200,000 of certain non-recurring expenses or charges relating primarily to the 1996 acquisitions of the Serif companies and Software Publishing Corporation. These expenses
and charges accounted for approximately 85.8% of the Company's net loss for 1996. The weighted average number of common shares utstanding was 3,614,479 and 1,493,171, respectively, for the 1996 and 1995 years.
The Company reported that its current assets totaled $15,752,859 at year-end 1996 and included $11,161,634 of cash, cash equivalents and short-term investments.
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The big loss was mostly from charging acquistions off right up
front , ( a lot of companies amortize them out thus cooking the
books ) at any rate the next report will benifit by not having that
85.8% loss in it..BUT here is what is hard to belive..if they only
have 3.614 MM shares out and have CASH of $11.161 MM thats a lot
of CASH..DAMM THATS $3.21 per share in cash..this just sounds to good
to be true and it selling for $2 a share. What am I missing here ?
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If this is true this is a steal !...look before you leap..I might
be buying your shares..if I find out the report is not in error..?
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One other thing they need to do a 1 for 3 stock split to get the
price up above $5..many mutual funds are limited to buying stock
above the $5 mark..they can hold stock that falls under that but
it is not marginable..but many can't buy stock under that..and
I like to have stock over $5.25 as it can be used as a margin
requiment if I buy something else on margin, were as if it is
below 5.25 it drops to my cash account and reduces my margin
level..and could even cause me to have to make a margin maintance
call if I'm cutting things thin..I'm not but just in case..
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Surly this company has out more than 3.6 MM shares ?
Jim
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