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 : 50% Gains Investing -- Ignore unavailable to you. Want to Upgrade?

To: Galirayo who wrote (46143)	5/9/2006 7:27:00 PM
From: RumbleFish	Read Replies (2) \| Respond to of 118717

Has anybody ever heard of these guys? gargoyleinvestor.com When a stock is up 80% in one day . . . . . The Gargoyle Investor Initiates Strong Negative Opinion on UFP Technologies (NASDAQ: UFPT) The Gargoyle Investor (www.gargoyleinvestor.com) today initiated a STRONG NEGATIVE opinion on UFP Technologies (Nasdaq: UFPT) based on today’s unwarranted significant increase in its stock price as a reaction to UFPT’s press releases that reported an increase in earnings for the first quarter and its acquisition of a private company. Only questions investors might have are: 1) How exactly does UFPT plan on paying for this acquisition considering it “coincidentally” did not disclose in today’s press release how much cash it had left at the end of the first quarter? It sure was convenient to lump in the company’s cash with “current assets” in their version of what a typical investor would like to see in a balance sheet before nearly doubling a company’s stock price! FYI, at the end of their fourth quarter, UFPT had approximately $265,000 in cash left and plenty of debts to pay-off come the first quarter of 2006. 2) But hey, why believe us? They admit it themselves in their most recent 10K: “The Company's (UFPT’s) principal sources of funds are its operations and its revolving credit facility. Although the Company generated cash from operations in the year ended December 31, 2005, it cannot guarantee that its operations will generate cash in future periods.” - - can somebody say Private Placement or as we Wall Street people refer to as a PIPE? How about a nice convertible debenture? Either way, it appears that the expected dilution or debt, whichever way you cut it, will likely return UFPT back to a loss. 3) In conclusion, of course UFPT is not going to disclose the “exact terms of the deal”. Why would they when, according to Dunn & Bradstreet, this “earth-shattering” acquisition of a company is barely producing $1 million in sales, has no indication of earnings whatsoever and of its entire 15 employees, yes you heard it right, 15 - - 4 of them are labeled as “Founders or Directors”. Again, the Gargoyle cannot see the rationale behind the acquisition of a company founded in 1973 (talk about gaining market share through new technology) with a balance sheet that can’t even afford to pay for an investor conference call to discuss today’s “milestone event”.