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.

Technology Stocks : Red Brick Systems -- Ignore unavailable to you. Want to Upgrade?

To: SEAS who wrote (130)	1/17/1998 4:46:00 PM
From: J L Segal	Respond to of 304

SEAS, where did you get this write up? JL

To: SEAS who wrote (130)	1/17/1998 5:03:00 PM
From: J L Segal	Respond to of 304

SEAS, I'm not so sure I agree with this: " They made money on favorable tax breaks, not on good business practices and deserved the smashing they took today." REDB's revenues increased 18% over the same quarter last year. One time tax adjustments distorted the latest Q as well as the year ago Q. Last year they had a tax credit, and this latest Q they had an "abnormally high" tax rate. If you normalize the tax rates for both quarters @ 37%, operating earnings for the quarter were $0.06 per share compared to $0.07 for the year ago Q. (according to a report I read) -Remember REDB reported $0.19 for Dec'96, showing strong consistent earnings growth for (I think) 8 quarters in a row. The stock then began to sink when word was getting out that the following March '97 quarter couldn't follow through. I wonder how many investors paid attention to the tax benefit back then. JL

To: SEAS who wrote (130)	1/17/1998 8:55:00 PM
From: adam boshnyak	Respond to of 304

are you saying its a good buy on tuesday or not?

To: SEAS who wrote (130)	1/18/1998 2:23:00 PM
From: Thure Meyer	Respond to of 304

SEAS, I don't think that this is the story. There was a news bulletin on Yahoo where REDB was quoted as announcing that 1998 earnings will be a loss of .30/share instead of win of .17/share (details to follow). I have not found any details yet. But that kind of announcement goes a lot further to explaining this dramatic drop. Thure