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Technology Stocks : Gilat satellite networks (GILTF)

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To: HGIII who wrote (328)5/1/2002 2:55:29 PM
From: Robert T. Quasius   of 350
 
You're right about being cash flow negative, but the cash/share is from the Yahoo profile. Here's a link:

biz.yahoo.com

Here's a link to their balance sheet for 12/31/01. It shows $110.2MM in cash on their balance sheet. Divided by 23.36 MM shares outstanding, and we get $4.717/share in cash. Also, note the $284.3MM in current assets less current liabilities.

yahoo.marketguide.com

Looking at ratios, the quick ratios are in line with the industry. Long term debt/equity ratios are higher, but not so high as to suggest GILTF is choking on debt: Here's a link to the ratio analysis:

yahoo.marketguide.com

Times are tough, but I see GILTF as being one of the survivors of the telecom slump. Management is taking the right measures (pay cuts, layoffs, etc.) to conserve cash to ride through the recession.

Conditions should turn around in the next two years, and GILTF has some great technologies and deals in the works for the future.
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