To: Sir Auric Goldfinger who wrote (5134 ) 4/25/2000 12:07:00 PM From: jbe Read Replies (1) | Respond to of 19428
What do you folks think of these tentatively nominated short candidates? I say "tentatively" because I don't really know much of anything about the following companies. All that I can say about them is that they popped up on a screen I ran, looking for cashburning, high-debt companies (with a price no lower than $10) that 1) don't even have revenues, let alone profits, and 2)are not expected to become profitable soon. No company was a total wipe-out on every criterion I specified-- such a company would probably be out of business by now, anyway -- but these are among those that came the closest to meeting the criteria across the board(negative cashflow, negative interest coverage, high debt/equity ratio, lowest possible 1-year sales growth, lowest projected eps this fiscal year, lowest possible eps next fiscal year,lowest possible annualized 5-year projected growth rate): SIRI (Sirius Satellite Radio, Inc.) A true 'concept' stock: no revenues AT ALL. Debt/equity: 121.4 (100 is 1:1.) Interest coverage: -3.7 Price/cashflow ratio: -20.5 Eps this fiscal year: -61.1 Eps next fiscal year: -42.2 5-yr projection: N/AMYTN (MyTurn.com, Inc.) Debt/equity: 51.9 Interest coverage: -21.1 Price/cashflow ratio: -14.1 1-year sales growth: -42.9 EPS projections: none; not covered by any analysts. But figure given for three-year growth rate is NM (Not MEaningful). HGSI (Human Genome Sciences, Inc. This is one I think everyone has heard of.) Debt/equity: 193.3 Interest coverage: -11.7 Price/cashflow ratio: -83 1-year sales growth: -17.2 This year projected eps: -13.6 Next fiscal year eps: 10 5-yr. projection: Nobody's saying.CLTX (Collateral Therapeutics) Debt/equity: 3.5 (Not bad, but look at...) Interest coverage: -78.8 Price/cashflow ratio: -42.6 1-year sales growth: -33.8 This fiscal year eps: -53.7 Next fiscal year eps: -62.1 5-year projected eps: No takers. GBIX (Globix Corp.) Debt/equity: 100 Interest coverage: -8.1 Price/cashflow: -11.1 1-year sales growth: +2.5 This fiscal year eps: -103.5 Next fiscal year eps: -59.7 5-year projected eps: No estimates. I have nothing against the above companies; for all I know, they may actually be very deserving (the biotech companies in particular). They just share a similar, and not very reassuring, profile. They also share similar charts: a spike in price up to early March, and a precipitous fall thereafter, interrupted by occasional price jumps on rally days like today. They are all up today, for example, except for CLTX. Anyone familiar with any of these stocks? Any opinion? jbe