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.

Non-Tech : PPD (Pre-paid Legal Services) on the move -- Ignore unavailable to you. Want to Upgrade?

To: SC who wrote (760)	2/13/2000 4:38:00 PM
From: Michael Burry	Read Replies (5) \| Respond to of 801

This past quarter operating cash flow: $4.698 million Net income this past quarter: $10.426 million Really, one must think about that. And then think about the market cap at $650 million. And then think about the membership recruiting efficacy - the increase in total members divided by the sum (beginning total members plus new recruitments during the quarter): Mar-98 .450758598 Jun-98 .472518057 Sep-98 .407795522 Dec-98 .521534624 Mar-99 .38259801 Jun-99 .392183977 Sep-99 .435568751 Dec-99 .460880425 The December Q has been their best quarter historically in terms of this ratio, and in 99 it's down from 98. Over the last two years, they have recruited 1.2 million new members, but the total member count is up only 402 thousand. Additionally, think about how economically sensitive this business is. Somebody should really grill management about how all those alliances with traditional insurance brokers are working (they aren't - because it can't be sold in the traditional way). And anyone looking at this stock should realize that the insider buying so often quoted is not really insider buying and that in fact there has been steady insider selling that doesn't hit Yahoo. This stock isn't easy to figure out. And management intends it that way. If all these things don't give PPD bulls the willies, so be it. I've had my say here. Mike