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Technology Stocks : Gemstar Intl (GMST) -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (6337)	3/4/2004 6:55:16 AM
From: 100cfm	Read Replies (1) \| Respond to of 6516

Mike, Thanks for taking the time to listen to the CC and clear things up. I'm the dummy for nor really listening to the prepared comments part of the CC, I only partially listened since it's usually only a repeat of the press release. I'm gonna listen to the whole thing sometime today. But for now I'm releived to know that a company with aprox. 900M in revenues isn't losing $450M on a cah basis, LOL! However you do raise some more questions, where is the cash going and how much are they really making without the accounting write offs. Regarding cash they are paying 15M to acquire the remaining intrest in an entity whose name i can't recall that they already own. I know they said on one of the CCs last year that they are spending aprox 20M/yr on the new IPG and they spent 20M revamping TV Guide Mag, since the magazine sales continue to ecline it's safe to say they will continue to spend money to try and turn it around. So, 20M for TV Guide, 20M for the new IPG and 15M for the acquisition accounts for 55M of the cash. There's still a big chunk missing. They ended 03 with aprox 261M in cash and securities, now add in the 454M in cash payments for a total of $715M, minus 55M from above for a net of $660M. Where is the 150 to 300M going ? Let's try to figure out the P&L thing once again 878M in revenues 45M in one time fees (6M) intrest expenses (42M) stock compensation (885M) operating expenses ___________ (10M) in a cash operating loss. Now add in at least 200M for A&D and Asset impairment and the loss grows to 210M. So in order for the company to reach it's projected Operating profit of 44-69M, the company has to be making lots of money somewhere. Even if they are using a 5 yr amortization of the one time payments. That's GOOD NEWS! But where is the cash going? Maybe when I listen to the CC again I'll pick something up <G>

To: Mike Buckley who wrote (6337)	3/4/2004 7:14:08 AM
From: NY Stew	Respond to of 6516

Mike, Last night I was half way through a fairly long post (in haste) responding to some points made here but deleted as I was unable (in my mind) to express myself as I had wanted to what I consider some significant concerns and/or misunderstandings. Anyway, I'm glad you listened to the CC and got that horse and cart thing switched around :) I'm planning to take some quality time over the weekend to express the reasoning I'm invested in Gemstar again. Others here have made good points and expressed valid concerns and I'll add a couple of copper coins to the pot ... just want to do it when I have no distractions. Regards Stew