BTW, if twenty percent of the accounts receivable
are paid sooner, company will be cash flow positive from
operations.
Now, they have government agencies as clients. You
know how long they take. But one thing is for sure,
goverment agencies seldom default. With taxpayers
on their side, they usually pay up.
So, no need to be TOO scared by these "negative cash flow"
claims. Herd mentality is this: H.D. Brous puts MRV
as a short. Infrastructure editor reads it and because
he has a publication to release on time for his subscribers,
and he needs to write about something, he then writes about
MRV on his publication. The subscribers of H.D. Brous,
trying to justify their expensive subscriptions, follow their
advice. Infrastracture subscribers do the same. Stock
price drops below support points. Momentm short-sellers join the club. Short-sellers post them on
the Silicon Investor and yahoo boards. The longs get affected (me included). The weak longs sell out. The others just stopped buying. This drives the equilibrium price of the stock lower.
More momentum traders join the club. Stock price continues downward spiral. MRV issues notes offering. More momentum sellers follow. (I have to admit, management did its part in crontributing to the
drop. But they did not fail in the main thing that they ought
to deliver: earnings, and technology products)
Warning: Sometimes, these publications are indeed predictive.
But all I am saying is they are NOT the BIBLE. Sometimes,
these so-called "Bibles" can be wrong.
Mr Pink seems to have a good track record, but he also
does a few mistakes. I am not saying you should bet against
him, all i am saying is you have to make up your own mind. |
