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

To: michael c. dodge who wrote (143)	9/15/1998 9:45:00 AM
From: Elroy	Respond to of 204

True, the expected cash drain of $15 million in Q3 will leave them with $3 per share in cash after they report September results. That's still pretty attractive considering the share price is $2.25. As for not becoming cash flow positive four months from now, that arguement could be made for almost any company, right? Of course we don't know what the December results will be, but at least we know that management's restructuring plan is designed to produce a cash flow positive, profitable company by December. If it works, the stock should rise above cash (one would hope!), if not, hopefully the cash level provides a floor value for the shares. Seems a pretty good risk/reward to me.