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.

Biotech / Medical : GUMM - Eliminate the Common Cold -- Ignore unavailable to you. Want to Upgrade?

To: Mike M who wrote (4202)	1/7/2003 11:48:01 AM
From: Mark Marcellus	Read Replies (1) \| Respond to of 5582

Now Mike, let's try to have a reasonable discussion this time around. Management of this company has a history of being somewhat, shall we say, promotional so I think it's understandable that some of us might greet management pronouncements with skepticism. The pronouncement that particularly interests me is their statement that they will be "cash flow positive for the full year". I looked at the 3rd quarter 10Q and it seems to me that, barring a miracle, the cash flow positive claim is a bit of a stretch. To have positive cash flow from ops, they'd have to be plus 1.7M in the fourth quarter, which I find highly unlikely. It's true that they are slated to be overall cash flow positive, but that's largely a technicality. Cash flow from investing activities (BTW, not "financing activities", there's a typo in the 10-Q) will be over +10M due to maturity of long term securities that were rolled over into short term money. IOW, any company interested in clearly and accurately representing results rather than being promotional would not make the cash flow positive claim in this situation. For me, this tends to confirm my suspicion that the leopard has not changed his spots.