S.EDRY...RESPONSE TO GBIT EARNINGS AND GOOD NEWS TODAY...DID you know this?
First the News....Jo told me today that GBIT has decided to pull the convertibles. Remember it was the convertible issue that worried members on AOL the other morning and caused the stock to from $3.00. Well, no more worrying about dilutive effects from that. I sensed the company saw that the investment community was looking at that as a negative (even though I don't believe it was) and decided to cancel the sale. Now that's repsonsive to shareholder value!
NOW....regarding your comment about earnings predictions and insider info: You Wrote:
If Liberty is telling people to expect earnings of .32-.35, the numbers which were posted earlier by Mr. Gore are they crossing any legal boundaries? Put another way, if they are legally liable for the veracity of those statements, which even Jo said they were, then they are considered insiders, right? If they are insiders, can they be releasing info to a select group of people (i.e., members of the SI community and.or individual investors like Mr. Gore)?>
Now my response...WHAT!??? HUH?
Remember the 32-35 cent per share are PROJECTED earnings....THEY HAVEN'T HAPPENED YET. True, it is a very educated best GUESS based on the rapid progress they are making. But you can't have INSIDE information on events that haven't happened yet. Fiscal 1998 doesn't end for several months. Maybe you are confused about the time frame. This is ESTIMATED earnings FOR FISCAL 1998, not 1997. The Financials coming out next week will show a loss for 1997 but likely a strongly improved revenue growth picture for Q4.
PLEASE PEOPLE...do what I did...ask Liberty to send you the same mulit-page fax of GBIT that I have. It is very impressive and includes a table with all the financials, float, prospects for the future, PR plan coming up, everything. It's even a (800) phone call. TAKE ACTION YOURSELF! GET WITH IT AND FIND OUT HOW GOOD YOUR COMPANY IS. Sorry, but I get frustrated with idle specualtion and worry when the answers are 5 minutes and a phone call away.
Don't mean to pick on you, but too many people on SI fail to do their own DD....HERE's the chart you will see (in print!)
1996A 1997Est 1998Est
Revenues ($000) 42,100 54,900 $116,800 that $116.8 million
EBITDA ($000) (400) (655) 8,600
Net Income ($000) (1,085) (4,700) 2,700 that's $2.7 million profits
PRIMARY EPS/SH 0.31) (0.63) 0.32 postive earnings
Please understand that there are TWO set of financials coming out soon. Within a week, we will see the 1997 financials. WIth a month we should see the positive financials for Q1 of 1998.
What makes the company exciting is the huge positive improvements in trend that we will see when the financials come out. Nobody will be throwing a party over 1997 financials, the full year will show a loss.
But what we are expecting to see is that Q4 (OCT-DEC) of 1997 shows dramatic improvement over the previous quarters of 1997. Then Q1 of 1998 should be really a big improvement again. And because of the huge Lockheed Martin contract announced in Feb. 1998 and other contracts (see news), the story should just get better and better.
Hope that clears it up...be a little patient for a great ride. I am holding until at least $5-7, which I am confident of. And I love the fact this is a NASDAQ stock..it's automatically more trustworthy and valuable. COnsider that Liberty after DGIV won't be working on behalf of any companies that aren;t at least NASDAQ listed...the MM's are too shady and guidelines too lax on the BB
HAPPY INVESTING! |
