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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (10728)	6/30/1998 11:45:00 AM
From: Smilodon	Read Replies (1) \| Respond to of 18691

Notes on MODA. 97 sales of $4.4 mil, and earnings of $350K. $320K of the earnings from interest on equity offering proceeds. Q1 saw a loss of $1.9 mill and receivables grow to 242 days. The company also has capitalized software development costs to boost earnings. Market Cap of $100 mil. Only real current product is software that help consumers create their own home interior designs. This product is distributed by Broderbund. New hype is a development deal with Intel to develop E-Commerce applications to allow shoppers to browse, in 3-D, the virtual counterparts of real stores and try clothes on a mannequin. They have also signed some other deals with Cendant and HP, although financial ramifications are difficult to determine. The company is run by two families, the Freeman and the Vecchione. They also control the board. Recently the two top officers were awarded raised and $100k signing bonuses, even though they were already on the job. It looks like the company is really hyping the Intel relationship and its recent agreements. However there is some doubt that any of it will generate a profitable product. It also seems the insiders are taking a lot out of the company. Most of this information is from a Herb Greenberg column in thestreet.com on 6/4/98. I have just started my work on it, and have little additional information to contribute as of yet. I would appreciate any additional information. Archer