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Technology Stocks : CellularVision (CVUS): 2-way LMDS wireless cable. -- Ignore unavailable to you. Want to Upgrade?

To: James Fink who wrote (1524)	3/15/1998 2:50:00 AM
From: Ken98	Respond to of 2063

Jim, thanks for the info on the license. Regarding the $$ situation: <<"The company's cash position as of the closing of this note is approximately $1 million. CVUS net working capital deficit is approximately $6 million. Property plant and equipment is estimated at $21 million with debt under $9 million. Stockholders' equity is currently estimated to be approximately $12 million.">> A couple of thoughts. First, the issue with all companies with negative cash flow is the "burn" rate for the cash in the bank. In other words, how long will that $1 million (covering negative cash flow) keep the lights turned on and the rent paid. That is why the Fleet loan is so important. I have never seen anyone run an analysis of this issue and it might be beneficial to determine when the loan must be obtained by. Shareholder's equity will not keep the lights on if there is not $$ in the bank. Second, what is covered by the $6 million net working capital deficit? The WSJ article referenced only a 40% frequency coverage for the internet services. EACH cell site costs $500,000-600,000. Hopefully the Fleet loan proceeds will be used to add a few cell sites and some marketing personnel.

To: James Fink who wrote (1524)	3/15/1998 10:32:00 PM
From: Ken98	Read Replies (1) \| Respond to of 2063

Jim, re. cash position. I had missed the quote from the January press release and after my post last night decided to try and calculate the "burn" rate for the cash in the bank, if that is even possible. After re-reading this quote I noticed something: <<"The company's cash position as of the closing of this note is approximately $1 million. CVUS net working capital deficit is approximately $6 million. Property plant and equipment is estimated at $21 million with debt under $9 million. Stockholders' equity is currently estimated to be approximately $12 million.">> If the JP Morgan loan was $1 million, and cash on hand "AS OF" the loan was $1 million, does that mean the cash position PRIOR to funding the loan or AFTER? A rather critical distinction don't you think? See if this works for a cash "burn" rate. These numbers are based on 3Q numbers. If anyone else has any thoughts or a better way to calculate it please do so. This was the best I could come up with. (1) 3Q Revenues = $1,396,000 or $465,333/month (2) 3Q Expenses = $5,151,000 or $1,717,000/month Net monthly operating deficit = $1,251,666 I could not access the Edgar site to get the complete 3Q numbers and I had to use the abbreviated numbers from the Yahoo news release section. I am assuming that the expenses include "non-cash" items like depreciation that will need to be backed out. But this should be a good starting point.