Thought I'd try to wake up this thread with some provocative math:
Remember in June of 1997 when CGRM sold the text to speech (TTS) technology to Lernout and Hauspie (LHSPF:NASDAQ)? CGRM received about 200,000 shares of LHSPF (valued at about $25 then) for a total of 5 million dollars. After a lot of speculation, this thread concluded that it was probably a decent move, as CGRM was only generating 2 million in revenue from the TTS technology. It was better to take the immediate 5 million in "profit" and benefit from future gains by getting the TTS technology in strong hands and profitting from Lernout and Hauspie's selling and distribution expertise in this area by holding their stock.
Well, LHSPF had doubled since then, and is trading around $50. That means CGRM initial 5 million dollar sale price is now 10 million! Not bad, considering CGRM was only making 2 million in revenue with no profit when they had the TTS.
Here's the kicker. Earnings for the last 4 quarters have been approx. 1.1 million, $700,000, loss of 6.3 million, and 3.1 million. Earnings expectations for this current quarter are $0.06 a share, or $420,000 (7 million shares available).
Now that CGRM has made a paper profit of 5 million dollars from the LHSPF stock, can't they declare that on quarterly reports? Assuming expenses have not gone through the roof, we should easily meet our goal of $420,000 earnings this quarter, given our clean 5 million dollar stock profit. Can CGRM actually declare this profit on a quarterly report? It should all be part of it's business, as it sold off one performing asset (technology) for another (stock). |
