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Technology Stocks : Viador (VIAD) - Enterprise Portal -- Ignore unavailable to you. Want to Upgrade?

To: Runomo™ who wrote (199)	8/5/2000 8:38:28 PM
From: Carl R.	Respond to of 294

Obviously the primary concern for VIAD is the weak cash position. VIAD is growing aggressively, and that is what they need to do at this point in time. Unfortunately that burns cash. VIAD will have to raise cash eventually, and sometimes when you wait too long the money gets more expensive. They should have done a secondary last Jan-April with the stock at 50. Now they may have to resort to a private placement or a convertible unless the stock rises appreciably. In fairness, they could also resort to a small amount of debt financing ($5 million or so) IF they can show a path to profitability. With net working capital of about $25 million, and burning $5 million a quarter, they should be able to go 5-6 quarters without running out of cash. They are expected to break even by the end of next year, so they could make it without additional cash if everything goes OK, but they don't have much margin for error. As far as the company itself, it is growing nicely, and appears to be in good shape to take a dominant position in EIP if they don't run out of cash. I substantially reduced my position with the stock from 15-17, but I do have a few shares left. I am considering adding back next week. Carl