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Technology Stocks : CDCO - CidCo Incorporated -- Ignore unavailable to you. Want to Upgrade?

To: J R KARY who wrote (137)	7/8/1998 9:52:00 PM
From: Elroy	Read Replies (1) \| Respond to of 204

Can someone explain what is up with this stock (CDCO)? According to the March 10Q, the company has $77MM in cash and short term investments ($53.7MM cash, $23.7MM short term notes). With 14MM shares outstanding, that's over $5.50 per share. They have $18MM in long term assets (planes, buildings, manufacturing facilities, etc., right). That's another $1.20 or so per share in book value, say $0.50 cash value (at least). So the assets of the company (mostly CASH) are worth 6 bucks a share, or about $85 million. Receivables and Payables are almost equal. There is no debt. There are no lawsuits. There is even $14MM worth of inventory that might get sold some day. Say even the $14MM of inventory is worth zero. So why is the market capitalization of the company $3.75 x 14MM shares )=~$53MM? In the July Q prerelease (6/22), they said they expect to lose $6MM this Q due to disappointing revenues, reduced prices and delays from major customers. Even if that all came out of cash, the companies assets, even just remaining cash assets, are still less than the share price. In addition, the prerelease says...said Daniel L. Eilers, CIDCO president and chief executive officer. ''On July 22nd, we expect to announce the steps we are taking and will take to deal with the fundamental changes which have occurred in the segments of the industry in which we derive the majority of our business today.'' That means to me they will announce a plan to reduce expenses in the hopes to get back to profitability. So, why is the stock price below cash?? Elroy