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 : HITSGALORE.COM (HITT) -- Ignore unavailable to you. Want to Upgrade?

To: Janice Shell who wrote (4910)	1/12/2000 6:29:00 PM
From: Mighty_Mezz	Read Replies (3) \| Respond to of 7056

ROFL! At the end of June, HITT had $273,000 cash, according to the Q2 10Q. At the end of Sept, HITT had $90,000 cash, according to the Q3 10Q. At that burn rate, HITT ran out of cash 6 weeks ago. I guess that's why this is in the Q3 10Q: ===paste=== Until the Company receives the cash payments from the LFT transactions, the possibility exists that cash flow difficulties could arise. Therefore, the Company has re-opened negotiations with LFT to provide part or full payment in January 2000. The Company plans to make public the results of its negotiations as soon as an agreement in principle is reached. In the mean time, the Company anticipates meeting its cash flow short falls from operations by entering into short-term borrowing or other financing facilities pending receipt of the LFT monies. ===endpaste=== ...Mezz - I hear it's easy to get a credit card from Wingspan bank. LOL!

To: Janice Shell who wrote (4910)	1/12/2000 7:07:00 PM
From: Q.	Read Replies (1) \| Respond to of 7056

I see cash liquidity problems in the 10Q, and the co says it seeks to raise cash from LFT ahead of schedule, in fact this month. It appears to me, from my reading of the financial statements, that HITT likely does not have the cash to continue operating at this point. Comparing the 10Q's for the periods ending June 30 and Sept. 30, I see that they burned $342 k cash in operations, in Q3. That left them with only $272 k cash Sept. 30. If nothing has changed, they should have run out of cash completely before Dec. 31. Working capital (normally defined as current assets minus current liabilities, but which I further modify in this case by excluding accounts receivable since I assume they may be uncollectable) has worsened from a negative ($389 k) on June 30 to a hugely negativbe ($2.265 M) on Sept. 30. Based on my experience in following companies experiencing cash liquidity problems, Hitsgalore didn't have the capital to continue operating much beyond Sept. 30. The liquidity section of the 10Q has this shocker: Until the Company receives the cash payments from the LFT transactions, the possibility exists that cash flow difficulties could arise. Therefore, the Company has re-opened negotiations with LFT to provide part or full payment in January 2000. The Company plans to make public the results of its negotiations as soon as an agreement in principle is reached. In the mean time, the Company anticipates meeting its cash flow short falls from operations by entering into short-term borrowing or other financing facilities pending receipt of the LFT monies.