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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Don Earl who wrote (16129)	1/10/2003 1:55:02 AM
From: Don Earl	Read Replies (1) \| Respond to of 78570

I've mentioned Interland (INLD) a few times in the past year. (At higher prices) The transcript of their most recent conference call is available online: sec.gov The CC pretty well outlines where they are and what their objectives are for the next several quarters. The company has about $135 million in cash and $25 million in debt, with 140 million shares outstanding. Cash burn is currently around $2 million a quarter from operations. They're in the process of consolidating companies acquired over the past year, which they expect to be complete within 6 months. Projected savings are expected to result in Q4, ending in August, free cash flow positive in the neighborhood of $3 million. They have an acquisition on the table, which should close in March, that is already free cash flow positive and will increase their customer base by around 10%. The stock closed today at the lowest level it's been since September 2001 at $1.18. For what it is, I think there's a lot of upside potential over the next several years if they even come close to executing on their business plan.

To: Don Earl who wrote (16129)	1/11/2003 2:00:24 AM
From: Bob Rudd	Read Replies (2) \| Respond to of 78570

The Wall Street Journal reported a unique twist to Bush’s tax plan. In order not to discriminate against companies that do not pay dividends and do not wish to, retained earnings will be treated as reinvested dividends. This will allow investors to exclude the company’s increase in retained earnings when calculating their capital gains tax. To do this you gotta know the change in retained earnings over your holding period [Unless they arbitrarily specify the measure to begin and end at quarterly reporting periods]. Economics and policy makers are saying it's critical to the plan that it make neutral the decision to retain or pay dividends - they don't want to 'hollow-out' companies with good growth prospects by encouraging them to pay dividends instead of reinvesting in the biz. A further condition of either dividend or retained earnings/cap gains exemption would be that the company actually pay takes in the US so the Tyco's of the world and companies that don't pay taxes would be excluded. Proration or no...all this supports your assertion that this will be a bookkeeping nightmare.