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Gold/Mining/Energy : PYNG Technologies -- Ignore unavailable to you. Want to Upgrade?

To: naturalperson who wrote (7435)	7/24/2005 6:19:35 AM
From: esxtarus	Read Replies (1) \| Respond to of 8117

Why would they want to show a loss??? MJ will never get his shares out of escrow that way.

To: naturalperson who wrote (7435)	7/24/2005 9:23:55 PM
From: kimball93	Read Replies (1) \| Respond to of 8117

EBITDA I will disagree a bit here on a couple points. A private business transaction does in fact look at measures like cashflow rather than the bottom line but investors by and large do not. Based on that if they are trying to increase the value for existing shareholders which is supposed to be their job I would expect they would want to report profits. That is in fact how most public companies seem to operate to the point of inflating profits (think enron). As far as depreciation you have to be careful in assuming it doesn't matter. Depreciation expenses are frequently the result of capital purchases by the business and these are often recurring in nature. If I have to replace equipment every 5 years and depreciate it than the depreciation should count against earnings. All IMHO

To: naturalperson who wrote (7435)	7/24/2005 9:57:02 PM
From: Jack Rayfield	Read Replies (1) \| Respond to of 8117

You are correct amortization of the defered research does not effect cashflow and Pyng is already showing positive cashflow which is really more important for company survival than Net Profit. But unfortunately most investors are not CPAs or sophisticated accountants and so only read Earnings Per Share figures which are based on Net Profit after taxes and all expenses to determine whether a company is a good investment and in most investors minds a company that is showing a loss is a loser investment. That is just the facts. I am a CPA and fully understand that companies can show a Net Profit but be generating negative cashflow and go bankrupt or be showing a Net Loss and yet be in reasonably solid finanacial shape due to the fact they have items that cause the Net Loss that are non Cash using like Deferred Research. Pyng does not have to worry about tax planning at this point as they have a large Net Loss carryforward that will be used when they begin to owe taxes. Pyng had better not show a Net Loss for Q3 FY05 or it will be trading for C$.25 again.