Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: PAL who wrote (8926)	12/28/1999 12:47:00 PM
From: SecularBull	Respond to of 29987

~OT~ Re: DELL... Knowing when to call it a day is important. I'm not perfect, but I think my timing was pretty darn good. I try to look at the market cap of companies relative to their industry's and the overall market. DELL's a valuable company, but not that valuable as of the present time. I owe a lot to Michael Dell and his management team for their outstanding successes at creating shareholder value. I thank them, and I move on, never forgetting the one's that brung me. LoD

To: PAL who wrote (8926)	12/28/1999 12:58:00 PM
From: Rocket Scientist	Read Replies (1) \| Respond to of 29987

I don't know where this 400K subs to be profitable figure came from, Gilder or some other newsletter, but it's clearly mistaken, imho. From the latest company 10Q, operating expenses and cash interest costs are 125M$ per quarter. There will be non-cash interest and depreciation expenses. The latter is easily estimated as 300M$/year (a 3B$ asset over 10 years). So the total expenses before EPS breakeven is at least 800M$ (I believe there are non-cash interest expenses and prefered dividends that make the situation somewhat worse) The company's guidance on revenue per subscriber has been approximately 1000$/sub/year (160minutes of use per month at .47$/minute average). So you'd need at least 800K subs for EPS breakeven. This is reasonably consistent with (actually somewhat optimistic, compared to) company guidance from May 99 that said it needed 1M subs to make operating and interest expenses and system replacement costs.