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Strategies & Market Trends : Three Amigos Stock Thread

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To: Harold who wrote (27750)	1/4/2002 6:49:16 PM
From: Ken W	Read Replies (3) of 29382

Harold CLAC: I'd guess that the move on the stock was partly due to some short covering and the upcoming payment of 250k on the balance of 750k that the company is being paid for the sale of their software div. The payment is not due until Mar. but even a short seller is smart enough to figure out that the cash will show directly to the bottom line. In the last Q. reported the company increased their revenue by 98% to over 12 million for the Q. and was able to decrease the reported loss by a considerable amount. Basically, the company provides the service of a "telemarketer" via permissioned email. In other words you have to want to get the advertizment from them. They also provide the data to their customer as to who wants the ads so the client can better taylor the email to specific groups and even personalize it. Most of us get these things with subjects like "Ken, you are a preferred customer with xxx and here is your free cell phone for just filling out this questionaire". Much like IRIC these kinds of companies will benefit with a turnaround in advertizement spending if the the recession is indeed over with. CLAC has only 5 million shares in the float so it would not take much to make the stock go up from here, however, keep in mind that the stock has reached this point from a low of .30. Price to book is a little high, while price to sales is good (meaning that it costs them less than a dollar to sell a dollar's worth of service. ROE and ROA are very good, but cash is a bit low, which is why they sold the software div. for 750k. Ken Ken

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