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

To: anializer who wrote (33593)	2/21/2009 11:08:09 AM
From: MCsweet	Read Replies (1) \| Respond to of 78470

Anializer, In general, I also do not trust companies that use pro-forma accounting numbers. However, I think you are double counting. The losses consist of goodwill writedowns and intangible amortization plus losses on the ARPs. Since these balance sheet items are approaching 0 anyway, those losses will not continue to eat into book value. More importantly, you have already subtracted them out of tangible book, so saying they will eat into tangible book value is not correct IMO. That's why I recommend you look at the cash flows. I agree it is correct to mark the intangibles to 0. So you have 0.55 in book plus significant positive operating cash flows, plus potential for an ARPs settlement in cash equal to the current value of the stock price. Plus a buyback of another $1 million or so coming up. MC

To: anializer who wrote (33593)	9/10/2009 2:08:10 PM
From: MCsweet	Read Replies (3) \| Respond to of 78470

MNDO, MNDO got the ARPs settlement as I basically expected, but wasn't sure about. Up 50% or so today. I am taking some more profits today, having unfortunately sold some of my position in the low 1's after having bought in the 0.60s and higher. I just wasn't 100% sure we'd get the settlement. MC

To: anializer who wrote (33593)	3/3/2010 4:18:27 PM
From: MCsweet	Read Replies (2) \| Respond to of 78470

MNDO update, Out of laziness, I still luckily own some MNDO shares. In the 0.60's, that was about as close to a no-brainer as I have seen in some time. It was trading near cash with the prospect of a huge ARPs settlement that had a high likelihood of probability in my view. I just sold some more at 1.59, having been paid a 0.80 dividend in the meantime. I guess people like the fact that they may keep paying a dividend. MC