| When you ramp up new businesses, you incur equipment costs (eg servers to transmit guide data), resulting in D&A, which is a non-cash, earnings reducing expense. In a sense, D&A actually helps a co. because it reduces taxes and enables a buildup of cash. I personally own over 17000 shs of GMST and am more convinced than ever after yesterday's meeting. I do have a bias, however, I insist on investments that are good for at least a year & a day; I cannot abide sharing 39.6% of my profits with Sam , so I don't trade. Remember,the ramp-up of ad revs. is in an embryonic stage, and the EPG obsoletes some of the current rev. stream from TVG (as we move print to electronics). I have a TWX guide in a digital SFA box in NY, and a TVG guide in FL. The latter is better, and the former is under patent litigation. Add that to E-books, in which I have gone from skeptic to enthusiast especially after previewing the new Thompson offering yesterday, and you may see why I am this long. |
