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.

Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: PuddleGlum who wrote (3206)	12/17/2002 12:51:43 AM
From: Crossy	Read Replies (1) \| Respond to of 37387

Puddleglum, wow - it's great that some of my pals were able to profit from IPSU as well. Can only attest to watch it closely. Don't let yourself be stopped out by daily jitter. I would suggest to wait at least for the December 10-K and the January 10-Q. About that time, it should come clear that IPSU's troubles are past and that the book value has increased to at least $14 without any significant high-yield longterm debt.. I suspect they are positioning themselves nicely to accomodate NAFTA opening of sugar imports. They will retain a captive refining base of their most efficient beet and cane plants after letting go parts of their refining capacity and closing down the least efficient milling sites. But it seemed they were keeping all the sugar related marketing - downstream activities. In such a stuation, where their manufacturing capaicty was brought down to a tiny fraction while their internal requirements for final goods (sugar related) stayed the same, they will be in a position to capitalize on the gradual opening up of the US sugar market. Schrewd plan.. rgrds CROSSY

To: PuddleGlum who wrote (3206)	12/17/2002 3:08:52 AM
From: Crossy	Read Replies (1) \| Respond to of 37387

re: MPOW.OB (Mpower Communications) @ $0.20 this is a CLEC/DLEC operation offering (competitive carrier)SDSL and T1 products to business customers. The company recently came out of Chapter 11, eliminated 90% of debt (carrying 13% interest) and got rid off its Preferred stock in the process. 60m common shares are out. Recently Mpower has redeemed all the remaining outstanding longterm debt through open market purchases at a fraction of face value. Operating results have been steadily improving. While EBITDA is still negative, they now feature improved Gross Margins (around 40% - quite high for a DSL CLEC). Discretionary item SG&A looks like further containable. Book value after debt repurachse around $1.50 per share. Price/Book amounts to approx. 0.15. The CEO has implied either a financing or a "strategic transaction" at the time of debt repurchase. I do know this is risky but Gross Margins aren't any worse than with ILECs here and with either a financing or a merger they would be an accretive operation. They would add immediate value to any mid to large size CLEC like CTCO, ALGX, TWTC, MCLD etc.. I did some DD and uncovered that those notes had some very restrictive covenants precluding expansion, new financing or a merger. best rgrds CROSSY

To: PuddleGlum who wrote (3206)	1/2/2003 12:09:53 PM
From: Crossy	Read Replies (1) \| Respond to of 37387

re: Amex: ALU (Allou Health and Beauty) This is another potential asset play, now around $2.75. Book value is $12 and almost no goodwill involved. It's an insurance (fire insurance case) and there's an arson investigation. However I look as it as a "REAL OPTION" and decided that at current prices, the risks are outweighed BY FAR by the potential rewards... Outstanding around 7m shares. Insured amount is $100m. Would add around $13 per share in CASH.. even a partial settlement would ignite the stock. I expect some news in February.. all the best CROSSY

To: PuddleGlum who wrote (3206)	1/8/2003 9:11:46 PM
From: Crossy	Read Replies (1) \| Respond to of 37387

re: MPOW.OB A couple of important strategic transcations completed today.. Company sold 35% of their customers (public info) but more than 50% of their operating costs (I concluded this by some inference) Rumor has it that they obtained at least $35m in the transaction. Plus they obtained a commitement for an A/R securitization line of $7.5m. If true this means they added book value in the transaction. After this transaction I see MPOW.OB to be EBITDA positive on a going-forward basis.. stay tuned rgrds CROSSY