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

To: Terry Maloney who wrote (149481)	2/6/2002 6:16:35 PM
From: reaper	Read Replies (2) \| Respond to of 436258

ELN -- I initially got long at $15 near the close on Monday. Tripled down at $13 1/2 Tuesday. Bailed today 'cause I just don't trust this market and don't want to tie up my capital; I value liquidity above all else in this environment. I THOUGHT there is some real value here, but as I spend more time with the financial statements I am starting to wonder. If you look at the cash flow statement you will see BIG cash from operations; $304.0mm in CY00 and $388.4mm in CY99. But, you will also see a line called "payments to acquire financial fixed assets", which totalled <$411.9mm> in CY00 and <$446.5mm> in CY99. I THINK (I have not investigated it fully yet) that these may be those payments to the off-balance sheet R&D vehicles that the WSJ wrote about the other day. Which payments come right back to Elan in a "round-trip" revenue sort of fashion. Anyway, IF this is the case, then the true cash generation of this company is less than zero, which is not worth the current market cap. I think I might have just gotten really lucky on this trade and caught a dead cat I didn't deserve. I'm not getting back in 'til I have a chance to really comb the financials this weekend at the earliest. Cheers