Bill Wexler's Profits of DOOM Message Board

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Strategies & Market Trends : Bill Wexler's Profits of DOOM

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To: Bill Wexler who wrote (743)	5/16/1998 4:59:00 AM
From: Bill Wexler	Read Replies (4) of 4634

CYBG spends $.95 of SG&A for every $1.00 in revenue. Despite claims of "improving margins", Cyberguard continues to lose ever-increasing amounts of money. This is not surprising since every dollar in revenue costs nearly a dollar in selling, general and administrative expenses. This pattern of huge SG&A has been recurring quarter after quarter. By comparison, Cyberguard's competitor Checkpoint, spends about $.30 in SG&A for every dollar in revenue. Cyberguard has shown nearly zero growth quarter over quarter. For a company which claims to be in a "hot" industry, this is a good indication of just how weak the business really is. CYBG is grossly overvalued and will soon trade in the low single digits.

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