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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (1229)	6/23/1998 11:20:00 AM
From: Q.	Read Replies (1) \| Respond to of 2506

Dale, KMAG's chart certainly looks broken. From the sound of the news release, it seems certain some dilution is coming too. On the other hand, KMAG's March financial statements showed lots of cash and positive cashflow from operations, and it looks like the p/b is < 1. So I wonder if this is already at the 'beaten-down value stock' stage. I haven't done any real DD, though ... Separately, on the topic of disk storage ... I'm probably the world's slowest short-seller to notice it, but cash flow. So I shorted a tiny bit of IOM yesterday. It's a bigger than the kind yesterday I saw that IOM has been breaking down tremendously, with humongous negative cashflow from operations, and a cash situation that looks increasingly tight. I also noticed that the PSR was comparable to that of SEG, despite SEG's much stronger balance sheet. Being in violation of loan covenants is an interesting indicator too, although not one I put much weight on, as a co. that sells something can always get a credit line. IOM is bigger than the broken stocks I usually look at, but what the heck, it still looks like a good broken stock.