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Microcap & Penny Stocks : HITSGALORE.COM (HITT) -- Ignore unavailable to you. Want to Upgrade?

To: bob sims who wrote (2990)	7/23/1999 3:03:00 PM
From: Daniel Chisholm	Read Replies (1) \| Respond to of 7056

Hi bob, Just thought I'd discuss HITT's 2Q press release a bit. It's so much nicer to have something new to discuss rather than just the same old postings (dig, dig... ;-) I was surprised to see that their operating expenses were up so high, to a nice round $1,000,000, and that their gross margin has fallen. In their previous quarter they had sales of $391K and operating expenses of $180K, for a 54% gross profit margin. In this quarter they indicate gross profit of $200K on $1200K sales, for a gross profit margin of 17%. As N-squiggle noted, a good portion of their reported $1.2M revenue could very well be non-cash accruals of the "Local City Edition" sales they made to LFT (HITT's financial relationship with LFT seems to be promise-rich but cash-poor). Because of this they might have experienced significant growth in their Accounts Receivable, and a corresponding hit to their cash (which was only $581K at the end of the first quarter). There was one sentence that set my "reading between the lines radar" off: Hitsgalore.com recognizes the revenue as new Local City Editions are ready to be brought online. If one was inclined to be doubtful or skeptical, as I sometimes am, the phrasing of this sentence might seem almost Clintonesque in the wiggle-room it provides - no LCEs actually have to be brought online (a fact that could be verified one way or the other by skeptics such as myself), rather they (HITT) merely have to make a judgement call that certain LCEs are "ready", and they proceed with booking revenue. If management were inclined to play games, they could aggressively book (say) another $4M or $5M of the remaining ~$9M of deferred LCE sales for the third quarter. In this way they could show third quarter revenue more than quadrupling over second quarter revenue, which in turn more than tripled over first quarter revenue. And they wouldn't have to face their auditors giving a thumbs-up or thumbs-down on their judgement in booking revenue for at least another quarter yet, since quarterly results are not audited (only the annual results are). Even if the LCE sales ultimately end up falling through and get restated downwards in the future, there is still almost nine months between now and when the audited financials (10-K) are due to be filed. In the intervening time there is still plenty of room for games to be played, should management desire. - Daniel

To: bob sims who wrote (2990)	7/23/1999 4:54:00 PM
From: Terry Thomas	Respond to of 7056

Which stamp is the LFT going to use to pay for this quarter's revenue? How about the one with Elvis on it?

To: bob sims who wrote (2990)	7/25/1999 11:47:00 PM
From: eims2000	Read Replies (2) \| Respond to of 7056

SI Bob, Is simply repeating a post over and over and over now permissible on SI? I was curious since it seems to be the norm now for this person. And I have seen it start to flourish on some other boards as well. Message 10631041 Message 10643649 Message 10646548 Message 10649647 And these.... Message 10646748 Message 10641270 Message 10570920 And last but not least.... Message 10646511 Message 10637738 Message 10631066 Message 10570942 Message 10377651 Message 10343609 Plus too many others to post. thanks rhansen