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Microcap & Penny Stocks : Centura Software Corporation (NASDAQ:CNTR) -- Ignore unavailable to you. Want to Upgrade?

To: MENSO who wrote (1819)	11/5/1997 6:19:00 PM
From: David Miller	Read Replies (3) \| Respond to of 2428

>>If the company paid all its outstanding bills today it would end up with less than 2 mill<< Sorry to be pedantic Leo, but the balance sheet shows Current Assets at $16.982m, which have to be offset against "Current Portion of Long Term Debt" $10.682m, "Accounts Payable" at $11.572m - even by this stage they are short by $5m - then the problem of deferred revenues of $15.524m arises, which I believe represents cash received from customers for revenues not yet recognized.... according to the balance sheet, they are (Current Assets -Current Liabilities) $21m behind the eight ball. To strangle a metaphor, the longterm debt chicken is coming home to roost. If my memory serves me, this is CA debt, and there are some conditions to it that aren't being fulfilled (Market Cap being one of them). My guess? CA takes Centura's assets, including the services revenue stream, (thereby being in a position to fulfil the Def Rev commitments), and pays off the AP. The cost to them is already significant - $11m debt forgiveness, $11m in AP - and the Current Assets would then cover the Deferred Revenues nicely.... Anybody see a different play? david