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

To: Dante Sinferno who wrote (1639)	8/12/1998 6:43:00 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 2506

Astonishing, indeed. Last times all of the IAI pack did some upticks. ENML shortlived, CYPH,CCSI, ZONA on Q numbers. I have seen CMI at 2 /7 short after opening. Mined the net for news but - nope. Well, there are hefty insider sales in progress, see.... And about the open market (P) purchases. Maybe a stockup program is in work to help the guys out? S.R bought 15.000 @ >5. Or, is it simply undervalued? biz.yahoo.com And according to the last 10Q, they pay a hefty interest bill on their conv debt, which is more than 50% of Operating Income, so they are vulnerable, as acting on high real leverage. sec.yahoo.com Most risk seems to lie in the huge AR post, and the delay in realizing money by claiming it. The company itself posts that the process of collecting outstanding bills got a more difficult one, in general, so the discounts calculated so far may be to small and to be restated the next time. Moreover, it is difficult to calculate the collapse in Present Value when all receivables are cashed in through new financing at higher rates than used in discounting them for the earnings and fin. statements. They trade well below their book value, which is 8 at least. Nothing about ratio convertibles has been filed. There are conv around but fixed at nine, or abit below due to other share or rights issues, say $8, still. Some staff stock plan has been announced, to grant some 1M stocks. Thats not that much. I will take a long position in the wake of the next 10Q which might be a positive surprise, though. Christian