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Strategies & Market Trends : Professional Equity Analysis - the Pursuit of True Value

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To: Reginald Middleton who wrote (42)1/29/1997 5:30:00 AM
From: MENSO   of 102
 
Reginald: Well, that is where I was hoping *you* could shed some light from your much-more experienced perspective. Their liquidity had been declining for some time, and their liability/assets (or is it the other way around?!) ratio is dismal. But the price/sales ratio is (was?) only .5 until 3Q, when most software companies trade with ratios in the 3 to 4 range. So the fact that this is the company's fourth profitable quarter when viewed from the proper perspective is in fact much better than you can imagine from simply reading their latest release.

I totally agree with you on earnings but, in *this* particular case, earnings is only an easily understood *indicator* of the radical turnaround that Centura is going thru. Does that make sense? Am I seeing this too naively?

Please check it out if you have the time. I would sincerely appreciate your perpspective on it. Either way, thanks again for the thread and for your prompt reply.

p.s. No, I have no connection to the company in the sense you mean it but, as a shareholder, I do of course own a very small piece of it which would probably qualify as a "connection" in *my* book! ; )
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