srcm is another low-quality stock that has flown high on internet
mania in the last week. The co. doesn't actually do much with the
internet. They lose tons and tons of money. Had to do discounted
convert financings in 1997. Shareholders equity is nevertheless deep
in the red.
There are 7 M warrants outstanding. Exercises of these could put a
lid on further stock price movement. Shares out is 11.5 M.
At 18 3/4, market cap is $215 M.
Yesterday the co. filed an S-3 to register shares of common for
warrants. The warrants are exercisable at $11, and callable at $20.
The S-3 looks like it was prepared in a hurry (lots of missing info)
so they'll surely have to file an amendment. Nevertheless, I'd bet
the co. intends to redeem the warrants if the stock holds above $20.
They need the cash. This is very attractive, from my point of view
as a short seller.
I think most short sellers have overlooked this particular case of
internet mania. When I did a search for the phrase 'srcm' in the text
of SI's posts in the last 30 days, nothing came up except the srcm
thread itself.
A market guide report is pasted below:
UPDATED Market Guide Quick Facts Report
Source Media, Inc. SYMBOL: SRCM EXCHANGE: NASD
PRICING DATA (AS OF) 04/17/98 RATIOS & STATISTICS
Price 17.44 Price/Revenue (TTM) 10.84
52 Week High 19.38 P/E (TTM) NM
52 Week Low 3.75 Price/Book (MRQ) NM
Beta 2.76 Price/Cash Flow (TTM) -9.06
Avg Daily Vol (10 Day) 0.31 Mil ROA (TTM) -70.16%
Avg Daily Vol (3 Month) 0.17 Mil ROE (TTM) NM%
Current Ratio (MRQ) 4.44
DIVIDEND INFORMATION Total Debt/Equity (MRQ) 79.08
Indicated Annual ($) 0.00
Yield 0.00% NOTE: TTM = trailing twelve months
MRQ = most recent quarter
SHARE RELATED INFORMATION SHORT INTEREST INFORMATION
Market Cap. ($) 202.106 Mil Current Month 0.903 Mil
Shares Out. 11.590 Mil Previous Month 0.830 Mil
Float 6.000 Mil Short Interest Ratio 7.1 Day
INSTITUTIONAL & INSIDER OWNERSHIP
PURCHASES SALES NET PURCH %OWNED
Institutions (3 Months) 0.151 Mil 0.045 Mil 0.105 Mil 10.0%
Insiders (6 Months) 0.000 Mil 0.010 Mil -0.010 Mil 48.2%
BUSINESS SUMMARY SRCM is a provider of on-demand information, services
and programming through cable television and telephone lines
by using the Company's proprietary digital operating systems
to mass market consumers. For the FY ended 12/97, revenues
fell less than 1% to $18.4M. Net loss before extra. item
applic. to Common totalled $29.3M, up from $13.9M. Revenues
suffered from the termination of distribution agreements in
certain DMAs. Higher loss reflects higher interest costs.
REVENUES (Thousands of U.S. Dollars)
QUARTERS 1994 1995 1996 1997
MAR 0 7,084 5,161 4,316
JUN 15,454 6,522 5,100 4,430
SEP 7,586 6,166 4,186 4,169
DEC 7,903 5,515 4,072 5,516
TOTAL 30,943 25,287 18,519 18,431
EARNINGS PER SHARE
MAR 0.000 -0.580 -0.220 -0.450
JUN -1.550 -0.750 -0.280 -0.530
SEP -0.720 -0.560 -0.420 -0.650
DEC -0.960 -0.335 -0.470 -0.900
TOTAL -3.230 -2.225 -1.390 -2.530 |
