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

To: Brinks who wrote (23286)	2/6/2006 12:07:15 PM
From: Mark Marcellus	Respond to of 78627

Cash position down? 5 minutes of dd would show they purchased Verity for CASH. Like I said, I only did two minutes. That was enough to tell me the cash went for acquisitions, I didn't bother to look up what they bought. The question is what part of their growth is organic vs part of a rollup process. For me, I know that it's going to be too complicated to figure out. Going further, IMO any effort to figure it out will almost certainly involve judgments beyond the scope of anything that could be called value investing. So for me, it definitely screams "stay away!" And that's before we get to the red flags of the promotional nature of the earnings release and the question of what the full story is with that government receivable that they're so confident they'll eventually collect in full.