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Microcap & Penny Stocks : TALK -- Ignore unavailable to you. Want to Upgrade?

To: ChrisJP who wrote (49)	11/19/2002 7:29:36 AM
From: Alfred W. Post	Read Replies (1) \| Respond to of 55

Thanks Cris, this shows that insiders with one exepteion have only bought shares in the company indicating that they too believe in its further progress. I looked at the balance sheet of the company and now halfway understand the negative shareholder value. They have an accumulated deficit of $395 Mio which comes to $14.6/share. If I understand this correctly this means that these are carrry foreward deficits because of former deficits which could not be compensated with profits and for this reason RALK does not have to pay taxes for some time to come. And if this is correct and one assumes for simpoicity sake a 50% corporate taxrate of 50% (?)and an operating profit of $2 per share, including future taxes the earnings would shrink to $ 1.--/sh and the PE, based on this assumption would be around 7 - still very low. How wrong are this assumptions? Your comment please. Fred