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

To: a128 who wrote (25942)	2/7/2007 8:29:05 AM
From: Grantcw	Respond to of 79000

Well, I did some more research yesterday and I'm still interested in SPOR, but probably not until/if it goes down to the 3's again. I had initially thought that from my brief research that it had pretty strong cash flows, but in looking at the financial statements again, yes SPOR had good operating cash flows in 2005 and 2006, but most of that was due to balance sheet changes such as increasing collections of Accounts receivable year-over-year and/or increasing accounts payable balances year-over-year. So, to me, unless operations can really turn around strongly, this is a play waiting for a buyout or private transaction and hoping book value holds up to some degree until this happens. It seems that management is at least considering taking the company private. Do you think the dutch tender was done to try to gauge at what general price they could offer to go private at for all shares later down the road? In my view, regardless, I think this play is interesting and if it goes down to the 3's (close today, down to 4.25 at one point) I would try to catch some shares and hope for another take out at $4.80 or higher. The thing I like about SPOR these days is that mgmt seems to be at least interested in taking action to increase shareholder value, which is a plus. Thanks, cw