Lane,
I am sorry for the late reply. I feel that IMO, it is more important to be concerned that the company can stay cash-flow positive this year. The revenue/accounting regulations for subscriptions do not allow us see the real impact of the customer base on PNLK. If it were to work out where 35K new subscribers subscribed in the last month of 1998, the revenue numbers could be really distorted. Just looking at these numbers, you could not get a feel for the number of subscribers. I will focus my analysis more on the cash, expenses, and number of subscribers. If the company can achieve the number of subscribers expected, and come in somewhere near the expense projections, the company maybe able to record a profit for the year. I think that would be a tremendous accomplishment for PNLK. This would effectively address all of the concerns raised by ChatField Dean. Maybe we could get them to issue a new report for us with a "buy". On second thought, at that point, why would we need a research report from ChatField Dean :-)
Good luck, and be patient with this one. I believe we have a winner here!!!!
Keith |
