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Strategies & Market Trends : Bankruptcy Predictor Model -- Ignore unavailable to you. Want to Upgrade?

To: Oblomov who wrote (423)	9/27/2000 9:41:51 AM
From: Carl R.	Read Replies (4) \| Respond to of 477

I have long suspected that the whole group (RTHM, COVD, NPNT, and TGNT) were headed for bankruptcy, but unfortunately I didn't have the guts to short them. Somehow the idea of financing a money-bleeding internet operation with high interest debt never seemed like a brilliant plan to me. These stocks are all losing something like $3 a quarter (but growing fast -LOL), and are projected to continue to do so for the forseeable future. Where will the money be coming from? siliconinvestor.com An interesting point that you raise is whether the fall from 100 to 10 has discounted the risk. In doing prior bankruptcy score calculations I found it was a chicken-and-egg situation. In other words, the fall from 100 to 10 created the risk! With the stock at 100 bankruptcy is unlikely because they can easily raise more more money. The company I did that calculation on was CCSI. I note that the stock price has now fallen significantly, but I also notice that they did raise some additional money and once again have a positive book value, though not very positive, and probably not for long unless they raise more. Carl