Yooohooooo! Danielle!
Have you even looked at any of the SEC filings on this thing? Let me help you out- the following is from the amended 10-K filed very recently, on 4/13/99, IOW, last week. Bear in mind that the Apollo announcement happened two days later. Note that if this financing doesn't pan out (it's just a letter of intent right now) it's my understanding that the auditors have expressed doubt as to the ability of RRRR to continue as a going concern. Such a warning is very bad news- you can expect that with this kind of sword hanging over RRRR's head they had little bargaining room. Ohh, yeah, I know- that's the past (heck almost two weeks!!!!), but it's not a sound foundation to hit the price target you mentioned which would be near a BILLION dollars in market cap. Get real. Trade it, but don't kid yourself about an investment. I've highlighted the most important parts for you. Remember, not only did they get going-concern warnings for the old shell, but apparently also since the new company has come into existence and since they changed auditors.
I would appreciate any corrections to my understanding here if I've made an error.
Thanks,
Anaxagoras
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<< We have audited the accompanying consolidated balance sheet of Rare Medium Group, Inc. as of December 31, 1998 and the related consolidated statements of operations, changes in stockholders' equity (deficit) and cash flows for the year then ended. These consolidated financial statements are the responsibility of Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. The consolidated financial statements of the Company as of December 31, 1997 and for each of the years in the two-year period ended December 31, 1997 were audited by other auditors whose report, dated March 20, 1998, on those statements included an explanatory paragraph that states that the Company has incurred losses accumulating to $54,184,410 through December 31, 1997, which raises substantial
doubt of their ability to continue as a going concern.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Rare Medium Group, Inc. as of December 31, 1998 and the results of their operations and their cash flows for the year then ended in conformity with generally accepted accounting principles.
The accompanying consolidated financial statements have been prepared assuming that Rare Medium Group, Inc. will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has suffered net losses and losses from continuing operations, has a working capital deficiency and has incurred accumulated losses through December 31, 1998. These factors, raise substantial doubt about the Company's ability to
continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.>> |
