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Technology Stocks : CPTL

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To: Vincent who wrote (162)8/4/1998 10:57:00 AM
From: Pluvia  Read Replies (1) of 199
 
CPTL STRONG SELL Rec. Buyer Beware

On the Pluvia Capital Research, Rain Securities valuation, this company comes up a five (out of possible five) storm clouds making it a STRONG SELL Rec.

I am shorting this stock and suggest holders look closely at the events surrounding this company and either sell their long position or sell and then short the stock and wait for the impending failure of this company.. Here are a few of this company's many problems:

1. Significant revenue shortfalls - K states the TRO only affected 2% of this company's potential market. Thus lifting of TRO should be of little consequence by company's own admission.

2. Convert Pref. Feeding the market stock - bad news to be long.

3. Shortage of working capital. If you don't have working capital and you can't borrow it, you are only left with very desperate private placements which will certainly hit the market and push the price down.

4. Failure to meet Revenue requirements as set by lender. Credit limit cut. Bad Bad news. Revenue shortfalls mixed with loss of credit along with shortage of working capital makes this company a real risk of going BK. BUYER BEWARE.

5. Big management salaries. Absurd salaries considering their management performance and the cash flow crisis this company is experiencing.

6. Big AR - Problem? Looks that way to me.

In conclusion, I would strongly suggest selling this company ASAP and moving to better investment opportunities.

All Comments Here Are Sincerely IMO.

Rain Securities &
Pluvia Capital Research
"where reality rains"

Cheers Steve
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