Irene: If you refer to the news release of June 14, 1996, first paragraph they say "Operating expenses, primarily legal expenses, continue to be an exceptional drain, which holds income down. When the shareholder lawsuit is settled, the end of litigation expenses should result in dramatic profit improvement to the benefit of both company growth and shareholder value." I think that they mean what they are saying here. These corporate lawyers don't come cheap. So, that is part of what I am basing my 'red ink' scenario on. I also agree with what you are saying that the company is a start-up company. An analogy might be nice new corvette. Right now, that corvette is on the on-ramp and looking for room to run. It's a nice car, but we still haven't seen what it can do in the fast lane.
Art: My personal maxim is "where there is money, there will be scullduggery." It's like a trainer at the race track concealing his bets from the public. Eventually they notice that this 20/1 shot is at 5/1. H'm, he hasn't shown any speed? He hasn't even had a race in over 2 months. The trainer knows he is ready and has placed his bets accordingly, as secretly as he can. But to a sharp observer of the tote board, the evidence is there. The horse of course still has to prove himself, but the smart money knows that he is ready for a great effort. Will IMMD win? We will just have to wait and see. |
