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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (80006)	7/11/2001 6:21:15 PM
From: American Spirit	Read Replies (3) \| Respond to of 99985

BS! SCNT's burn rate is only 22-25 million per quarter, they have picked up a few blue chip deals lately and they predict a profit by fiscal year's end. The mistakes in your report would lead one to believe they're sliding toward bankruptcy when in fact they're afloat and have all but assured their own suvival. Assuming 25 million revenues a quarter (minimal) they break even after June and do not spend their remaining 100 million at all. You also underestimates their margins by a longshot. The current market cap now only 45 million as let's face it some people are just sick and dumping it at the bottom. "With respect to the June quarter, we estimate that our cash balance at June 30, 2001 should approximate $110 million compared to $161 million in cash at March 31, 2001. We expect to spend approximately $40 million of cash in the June quarter on restructuring activities related to both the December and March/June quarter actions. Approximately $5-$10 million is projected to be consumed by business operations and an additional $5-$10 million for capital expenditures and changes in working capital.'' ``Upon successful completion of our restructuring action, Scient expects to achieve annual cost savings of approximately $175 million and will have lowered its quarterly break-even point to a range of $22-$25 million. Our goal is to reach break-even by the second half of this fiscal year ending March 31, 2002. As a result of repositioning the business, our long-term operating model now targets a gross margin in the 45%-50% range and an operating margin of approximately 15%,'' noted Mr. Kurtz.

To: Zeev Hed who wrote (80006)	7/11/2001 6:54:21 PM
From: American Spirit	Read Replies (2) \| Respond to of 99985

You should also apologize to the board for stating false numbers on SCNT a very volatile stock. I just posted the correct numbers and didn't buy it without looking at those numbers and CEO's statements closely. I also talked to my brother who worked there and knows the situation well. He has no concerns about them ever going bankrupt. Just the opposite. SCNT's 50% oversold now even without a recovery cased just on cash and low-no burn rate and no debt. That means book value is double where it's at now. And they have focused on the cash-rich energy business now as clients, and have already landed BP. They're targeting the cash-gouging hugely profitable natural gas industry as we speak. These new clients should replace the old dot-coms they had. They also have hung onto their main blue chip clients in the banking and other sectors. You should buy some here at the bottom and thank me later.