To: mark cox who wrote (5769 ) 12/20/1997 2:18:00 AM From: WallStBum Read Replies (1) | Respond to of 10368
I'm catching up on a few days posts and had various thoughts along the way: First, THANKING Curtis for the relay on the buy recommendation for BNGO. If nothing else, it solidified my resolve on BNGO fundamentals. My favorite part that they dance around as if to state the obvious, is the cash infusion: * Pristine Balance Sheet - After the warrant call, BNGO will have $24 million in equity and $2 million in debt. About $1.58 per share in cash, net of all debt. With just my plain calculator: $1.58 cash x6.70% US Government Long-Term Treasury Yields (riskless or guaranteed rate) =$.10586 xPE 20? =$2.1172 Let us review. After the warrant call, a five and 1/4 purchase today or on Monday, gets you $1.58 in cash (so you're really only paying $3.67 for an operational cash flow) and the minimum guaranteed riskless rate of return if BNGO does nothing else but simply invest in US Treasury Bills is 40.32% ($2.1172 / $5.25 - for this purpose I'll assume the full 5.25 and not the price net of cash of 3.67). Folks, this is a super-stock (little Ken Fischer lingo for ya). Yes I've been hurt somewhat by the warrant call. Christ at it's peak a $100,000 portfolio in BNGOW would be worth $2,500 today. Now you know why Rodney's a little quiet these days. BUT, BUT, BUT with the call almost over with good things are about to start happening. Just reading the past few days posts I can see the sentiment changing. What's more, Market Tracker MT is back!!!!! Confidence is restored and good things may happen again now. (gg) Seriously, I have seen quite a few long-termers who date back a ways popping up now. Make no mistake, this is a good sign. Best part of the SEC release: Based on its due diligence, the Registrant believes that Darlington will generate more than $4 million in revenues and $1,000,000 in free cash flow in 1997. Since the Registrant will account for the Acquisition as a pooling of interests, Darlington's historical financial results will be combined with the Registrant's financial results. 1997? 1997? Isn't that an additional .10 cents (using roughly 10M shares) additional 4thQ earnings (cash flow). Or possibly it includes the accretive affect of the prior 3 quarters (more likely) - regardless it's good. Thing is, at the end of the day, BNGO's fundamentals are just too good for even the TA-leaning type's to walk away from. Oh they'll pontificate on the crossing of the 20-day versus the 10-day moving average lines to suit their fancy, but in the end, BNGO remains an out-an-out good buy. dax