Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (139277)	12/18/2001 5:50:11 PM
From: reaper	Read Replies (2) \| Respond to of 436258

Ann Taylor has a terrible return on invested capital, much lower than its cost of capital. Although they generate P&L "earnings", they generate no cash. And they have a ton of off balance-sheet leverage, in the form of operating leases (for rent on their stores). This is the standard profile of a company that will eventually experience a liquidity crisis, and I am prepared to wait. I frankly have no idea (and don't really care) how their quarter is going; I'd guess that its not going well as their stores look pretty empty but who knows. On Yahoo!, I'm not sure where you get a $20 book value. I see $1.94 billion of shareholders' equity, divided by 572mm shares is about $3.40. And that book value is pretty real; its mostly cash. cheers