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Strategies & Market Trends : Value Investing

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To: gcrispin who wrote (15695)10/27/2002 11:22:49 AM
From: 249443  Read Replies (2) of 78702
 
"several stocks trading near or below net cash"

Good morning gcrispin,

It was an interesting article. But I still take issue with a good cash balance and a significant burn rate. If a company doesn't have a profitable business model, or even a a break cash flow -- then I have to pass.

"...The companies of the Riley Cash-Rich Tech Stock index were chosen because of their cheap valuations, strong balance sheets and core technologies. But after meeting with many management teams, the research firm has found management and board leadership all over the map...

...In 2001, management (of Stamps.com) concentrated on getting its burn rate under control by cutting costs. The quarterly burn is now about $700,000..."
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