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Non-Tech : HIDDEN VALUE STOCKS -- Ignore unavailable to you. Want to Upgrade?

To: Herc who wrote (45)	8/21/2001 11:15:59 AM
From: baystock	Read Replies (1) \| Respond to of 47

I think they are blowing thru their cash. I am not convinced they are going to get anything of value in return. The consumer electronics business is notoriously cutthroat, and is best left to specialists in that field like SONY. I had posted the following on the Sonic Blue thread a couple of months ago: They have been burning cash at the rate of $60-100 million per quarter for at least the last 5 quarters. This is why the need to sell their UMC holdings. The following is from their latest financials: "Cash used for operating activities was $61.7 million for the three months ended March 31, 2001 and consisted primarily of the Company's net loss of $335.8 million, which included a non-operating loss on its UMC investment of $458.0 million and deferred income taxes of $189.8 million. Cash used for operating activities for the three months ended March 31, 2000 was $104.3 million. " Considering that they are playing in the cut throat competetive consumer market, I see these losses continuing on for a long time.