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Microcap & Penny Stocks : CSHK CASHCO MANAGEMENT Y2K -- Ignore unavailable to you. Want to Upgrade?

To: John Chapman who wrote (5261)	8/5/1998 11:29:00 AM
From: F. Jason Fowler	Read Replies (1) \| Respond to of 7491

John, I understand the the sales from the litter would be around $15 M a year with a profit of $ 5 M after all start up cost and other cost are included. 5,000,000 divided by 20,143,405 = .25 cents a share annually. Add the .06 estimate for the y2k software and that makes it .31 cents annually. IMO that makes Cashco extremely undervalued !

To: John Chapman who wrote (5261)	8/5/1998 11:38:00 AM
From: Jeffrey S. Mitchell	Read Replies (1) \| Respond to of 7491

John (et al), I think it very important to know how Cashco books revenues. I know from past experience that software companies often book revenue when the product is shipped. Even large hardware companies like Compaq do the same. Thus, Compaq counts revenue even though the computers may be sitting in a distributor's warehouse somewhere. Eventually the product got sold, but short-term they used channel stuffing as a way to manipulate revenues. On the other hand, SYCR was notorious for shipping tons of software and declaring it a sale when in reality it just rotted on shelves. So, to be clear, the way CSHK books revenues does not in and of itself tell us anything important. It does, however, give us a better sense whether a sale is a piece of software in the hands of a customer or on the shelf of a distributor. We can then all make our own assumptions about the implications, good, bad, or indifferent. - Jeff