<<Anoher major problem that I see is that companies that go bankrupt don't disappear. They just reorganize and come out with much less debt. This insures that their competitors will have to file bankruptcy in order to compete. Nasty cycle. Where does it end? >>
The cycle never ends but the end is coming (for some of these)
Lets take a look at 7 stocks held by one fund
Ticker ( Recent period 3 to 9 mos)................................(.full Year).
AVCI Rev $17mm Loss$ 34mm ROE (-48%) For year Rev $33 mm Loss $96mm
AVNX ------------------------------------------------------- For year Rev $33mm Loss$ 75mm for year
CORV Rev $12mm Loss$ 19mm ROE (-64%) For year Rev $51 mm Loss $645mm
DSLN Rev $11mm Loss$ 11mm ROE (-101%) For year Rev $45 mm Loss $54mm
ESPR Rev $0mm Loss$ 7mm ROE (-43%) For year Rev $0 mm Loss $28mm
INAP Rev $32mm Loss$ 20mm ROE (-184%) For year Rev $125 mm Loss $187mm
LNUX Rev $16mm Loss$ 72mm ROE (-245%) For year Rev $31 mm Loss $362mm
Avg Sales $ 45 mm
Avg loss $214 mm
Avg ROE (-114%)
Pay for AVNX Executives is $22,153,000 to produce $33mm in Rev while losing $75mm.( the world is so unfair)
Conclusions:
1. On average they will run out of money within 11 months. DO NOT loan them more
2. Do not buy into this fund (G) They also own LPSN,MIWV,PDGM,PKSI,RHAT,SABA,SMRA,TELM,VCNT,WFII
3. Be careful buying 4 letter stocks containing an a,b,c,m,n,s,t,or w.(or other letters)
Sig |
