Kumar:
I totally agree with your assesment, however, lets not go too far. I know of many companies that are in the deeper shit then VRTY, trading in the 10's. (Not to say that they should!).
VRTY, just like you said, must get the message -- it has a fudiciary obligation to increase shareholder's value. So far, the shareholders equity dropped 28% from previous year! (Look at their statements).
But, they are positioned to do great things. Now, its MANAGEMENT! Can they produce money this year? -- YES! Will they produce money -- if they stick with operational goals set for FY'98 -- YES!
I noticed their selling expenses increased a lot (almost 2MM from FY'96 to FY'97). That may be a positive sign of more sales to come, but, they must watch the expeses running wild. They did make a smart move by bringing a savy Sales VP (Waserman?).
I honestly believe they are going through a painful tranformation of being a marketing company vs. technology company they always were! That is tough, my friend.
Don't write them off yet!
Jack
|
