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Strategies & Market Trends : cash-rich dot bombs -- Ignore unavailable to you. Want to Upgrade?


To: stock leader who wrote (162)1/18/2001 8:10:34 AM
From: EACarl  Respond to of 184
 
RE "STMP" STMP looks attractive at 1st glance based on its price being only about half of cash.
However even if you do not count "Amortization of goodwill and other intangibles", the other expenses
are still about TEN TIMES revenues, giving it a huge cash burn rate, and massive growth required
to break even. I'm not saying it can't pop up short term, but STMP is not one I'd like to get stuck
holding.

Regards, Eric.