Zeev's Turnips - No Politics Message Board

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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: LTK007 who wrote (13692)	12/15/2001 3:06:01 PM
From: Zeev Hed	Read Replies (3) of 99280

Max, I still am not sure I fully understand, the guy was mentioning that their "burn rate" was reduced to $20 MM/quarter, he never broached the question as to when and if they can become profitable. Looking at their last quarterly financial results, they had negative $20 MM in gross margins, on top of that they had quite a bunch of other operating expenses (at east some $50 MM or so should be expected to "stay" with them). Since during the last three quarters, the top line has not budged, why should the top line start to budge now? Even COVD admits they will not be positive cash till the second half of 2003. In my book, that is a long time during which a lot of things can go wrong... Zeev In edit, and Max I don't see any "bottomless" (these are actually "floorless") situation here. Yet there will be at least 225 MM shares outstanding, and I have no idea what is SBC's collateral for their $150 B. GE Capital must have taken a serious "bath" on this.

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