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Technology Stocks : The Learning Company (TLC)

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To: Greg R who wrote (5829)9/28/1998 10:49:00 PM
From: paul richards  Read Replies (1) of 6318
 
usual paid hyper-spin to induce investors into buying an unprofitable company, supporting all the convertible shares & warrants issued under Reg S, now being sold to them.

TLC suffers from every warning sign of impending trouble (ref thestreet.com "cracking the books"):

1)high receivables and high pre-factored DSO's
2)TLC has used aggressive write offs in 96 &97 which now artificially boost earnings.
3)has never been profitable and never will be because it continues to make acquisitions to keep this cycle going.

however, this will end with the new SEC rules...
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