Shorting stocks: Broken stocks - Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: drakes353 who wrote (1202)	6/19/1998 3:51:00 AM
From: Q.	Read Replies (2) of 2506

drakes, Equimed did report profits for the first nine months of 1997. In fact, $1.89 eps, which is quite a lot for a stock trading at 7 ... the p/e is a mere 2.8 ... if you believe the eps. The reason I'm skeptical about the profits are two indicators of funny accounting: * Cash flow for 9 mos. from operations was negative. Very negative, at ($6.7 M) as compared to reported net income of +$8.6 M. * Receivables doubled to $37 M, despite declining revenues. The CEO has plenty of opportunities to play funny games with numbers, since there are lots of acquisitions and lots of transactions with companies he owns. So we have no way of knowing what the real eps of the co. is: maybe it is $1.89 as reported, but maybe it is -$1.89. Who knows. That's why I would like to see Ernst & Young's audited numbers. The last 10Q can be found at edgar-online.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next