HI Allen: re >Has this company ever made money after you add up all the "special" one time charges (segregation of deficits)? <
So far as I can tell their accounting practices, have allowed them
to fake a small profit in the past, but was never really there.
They have caught some heat for that, but have not given up cooking
the books even yet. They they did some improving, but they
are still getting higher marks than they deserve.
They talk about increased cash coming in..but they have out spent
that increase 2 to one..and they still won't talk about things
beyond the so called refunds..it's just a guess on how many people
have called their credit card company and did a charge back..they
want you to think you are beholding to them to get your money back,
like they are doing you some favor..or that they will cause you
credit troubles if you cancel payment. What I know is that if they
try they can only hurt themselves. So they have all the sign ups
on paper but that is like counting the chicks before they hatch,
just how much income they really will get I don't know, but I
doubt it's any were near what they used to make this report less
drastic. So we can look forward to some more "special or unusual
charges in the future"..beyond that..they counted the full amount
as income for those that signed up for a year in the last quaker..
I'll have to look but even by AOLs statment that was a large percent
so now if so many are paid up for a year ( and she took a credit
for that as last quarters income ) what does she do to make up for
that in the next 3 quarters, as were will more money come from if
she can't get new signups..as for the little she made off advertising,
sure it was a big percentage increase, but it's not hard to increase something that was very tiny to begin with, and the 40m..is not anything even close to what she spent advertizing..my out looks are
very negative for her future..the so called 3.4m + she is to spend,
is a joke too..she don't have it. The work will get done OK, but
on credit..as the company doing the work just happens to be a rival,
and will then have a lean on AOL..she is going to get eaten up.
The stock is going to be almost worth less when it's all over,
then maybe after a big restructure she will come back, but under
new control. This could take some time to come home, I'm trying
to buy way out of the money puts ( cheaper )..for next year, but
I see they have price on them..that's very high for a healthy
company..so my guess is that insiders are accumulating out of
the money leaps, to have a way out of what they know is going to
happen but won't talk about.
Jim |
