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 : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (20569)	2/3/2005 1:27:57 PM
From: Paul Senior	Respond to of 78673

Took an exploratory position in BCGI, and am not doing well with this one. Apparently this prepaid wireless company has ridden on the backs of Verizon and Cingular, and the latter two are taking the business inside: "Earnings estimates reflect the previously announced expectation that Verizon Wireless will continue to convert subscribers from bcgi's platform to its internal platform, which is expected to be completed by the third quarter of 2005. In addition, the Company anticipates, as previously announced, that it will continue to have fewer gross additions from Cingular Wireless." Stock keeps dropping to new lows. At $7/sh. now, you get a profitable (for now) company, about $4.43 in cash, no debt (per Yahoo), and a book value of $7.64/sh. There've been no inside sales that I see (on Yahoo - which is not necessarily current); there were some small insider buys last year between $6 and $10/sh. Maybe this is almost another cash-in-search-of-a-business play. If so, and if it's like some other similar situations that I've seen, then there's still a decent likelihood (imo and guess) that the stock will drop even closer to it's cash value. OTOH, with the company being profitable, the book value, and the somewhat positive tone (of course!) of the pres. and ceo in Tue's 4q press release, maybe the bottom might be around current level. In any case- has been a VERY small bet for me. finance.yahoo.com