Ken G: Having to restate the NUKO financials means that the CFO was very incompetent, someone pulled the wool over eyes and told him that the products were accepted by the customers or the preperation of knowingly erroneous financial statements due to management fraud. The NUKO management might not have understood what they were asking him to do and they can always state they they don't understand Accounting. That's why I always love to see that the CFO is a CPA. When I hear that a CFO is an MBA, it means nothing unless their Major was in Accounting or Finance. In addtion, an undergraduate in Accounting from a well regarded University is better than a MBA, which is only a smattering of financial courses.
The important signal for me was that the credit line was renewed. I wish it was enlarged to give us more breathing room. Someone stated that the Bank was covered, which means it stands on-line in receivership before general creditors and the lowly stockholders. However, these Banks can smell road kill on the information highway before a buzzard could. They don't throw good money after bad money and they don't want to wait for it for 2 years. The companies are allowed to demonstrate to the banks information for the consideration of a loan or to bond rating agencies, that is not public information.
What you can show to a bank or bond rating agency legally is more than you can tell investors between 10Qs. They need a strong CFO and they need an Investor Retions expert IMHO. I am available for the right number of stock options.
I just invested more in NUKO, based on them turning the quarter this quarter or some big announcement. If Mr. BK is as cool as he is described in this thread either he knows he has turned the corner or this is Bre-X part 2.
If the market stays like it's doing today, that means the second quarter numbers should be good. Remember, the companies that have strategic relationships with NUKO and don't want this company to fold. So pressure is on the customers to accept the products so that NUKO can revenue recognized and tcollect the Cash! The gun is loaded an the customers can accept the products, if NUKO promises to fix the remaining technical difficulties. i seen that a hundred times in hi-tech manufacturing in the past. Who would want to be in the enginneers shoes telling his management that the product they recommended and invested their time in does not work. They usually pay the bill and pray that the company can deliver.
As for Mr. Gates, he may be flushing $1B dowm the drain, but look what it's done for Cable companies and Telephony companies. I must admit, MFST interviewed me last year, took me house hunting before the interview and didn't give the the job beacuse I didn't have a Phd in Accounting or Finance. Companies always look smart when they rake in money. Remember Ma Bell.
NUKO, ADSL et al will work on clear pairs if the technology is good. It won't work on skoched locked drop wires and in houses like the one I grew up in that had fourty to 60 year inside wire. Remember, the customers own the inside wire and when was the last time someone upgraded their inside wire. Telcos use 6 or 4 pair drop wires now, so if a pair is bad or you need o second line the union employee can do the job quicky an go to lunch.
The only other explanation could be that a large stockholder or MM is trying to push this stock up and stick it to us.
I hope this all makes sense to you engineers and marketing types. I have reviewed many threads on SI and what we are really missing is a Financial person with a business background for each thread.
People I will help, if you will teach me your the technology! |
