OK, these posts are ridiculous, not because they express some degree of skepticism (that is a healthy thing) but because your logic is all screwed up. If were to base your decisions on statements made by auditors at one static point in time you would miss a number of great stocks. Look at UNPH's statements which, for as long as I have remember, have warned of the POSSIBILITY of eroding margins due to severe competitive pressures. This type of conservative language does not reflect the company's outlook but is more a function of the litigious society in which we live.
As for ICMT, the auditor's opinion was rendered prior to the IPO at which time the company got a substantial cash infusion. And believe me, if the company requires additional capital for acquistions, etc. CSFB, RSSF, and DLJ can and will raise it.
Virtually every internet play is and will continue to lose money for the foreseeable future. While I like to see earnings as much as the next guy, I'm not willing to miss a huge sector move based upon some convoluted notion of valuation. Yes, theoretically, the value of any company should be the discounted value of the future cash flows but go and try to figure out what YHOO or AMZN or any of these deals will be doing 10 years from now. FORGET IT! You've got to look at relative valuation given the current state of investor psychology and using this approach, ICMT is a steal compared to USWB.
By the way, most of the sell side analysts I have talked to believe ICMT will be taken out relatively soon because of its network backbone
and blue chip customer base.
The reason why ICMT sat at $10 for so long is that the road show was poorly coordinated and a number of East Coast firms never saw them. To me, this just means more pent up demand for a great story.....Terry |
