i'm new to this thread.
i don't own any shares and i'm not a shorter. i'm just on the sidelines, waiting for the market to settle. i like this company and have been reading the message board on Yahoo and SI. i agree with you, that the dilution has been overemphasized. the shorters that have been posting on Yahoo are hilarious, they're intentions are so obveous (i can't spell with a darn).i'm concerned about a few things though. i don't understand the this post from yahoo. is this negative post correct. i'm not trying to post negative messages to bring the price down i just want to know the facts before i buy. thanx for anybodies help
tim
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According to GBIT fully 80% of the company's net income was tax credit. So would you rather be betting on a company with pretax income for six months of $0.25 less taxes of $0.10 for a net of $0.15. Or would you rather bet on GBIT with pretax of $0.02 and tax credit of $0.13 for a net of $0.15. Based on their 10Q this company is clinging by their fingertips to avoid bankruptcy and the investing public, the serious money with some smarts, knows it.
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did they only earn $0.02 without the tax credit. is this a bad thing?
is this the reason for the recent decline?
this is from the latest 10Q, these concerned me ,too.
Provision for Income Tax. The benefit for income taxes was
$930,089 for the first six months of 1998, compared to a benefit of $631,520 for
the same period in 1997. The Company has increased its deferred tax assets by
$1,078,100 as a result of the improved profits during the first six months. It
is anticipated that the improved profits will provide income enough to utilize
its deferred tax asset.
While the Company believes it has made substantial progress
since December 31, 1997, income and cash flow anticipated from continuing
operations during the remainder of 1998, together with working capital, may not
be sufficient to fund the Company's operations at existing levels. As a result,
the Company may require additional financing in the near or intermediate term.
There is no assurance that such financing will be available on terms acceptable
to the Company, or on any terms. |
