Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: Safado who wrote (566)	10/27/1998 7:53:00 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 19428

NWSS Well, the earnings number based on a diluted number seems to be correct, with respect to the number of common shares then. So they treat exercisable options as exercised. - the common share count (basic) is the number of actually out standing common shares. - the common share count (diluted) is the number obtained by adding in any convertible preferreds, rights which are ready to be execised. But: "In December 1997, the Company adopted SFAS No. 128, "Earnings Per Share". This statement requires the Company to change the method that was previously used to compute earnings per share and to restate all prior periods. Under the new requirements for calculating basic earnings per share, the dilutive effect of stock options and warrants are excluded." The profit/loss atributable to common is calculated by taking away the preferred dividends from yearly income. The conversion is fixed in a four to one ratio, as found in an old 10k. So it is in fact antidilutive when the yearly declared preferred dividend is greater than the income share atributable to the common stock issuable upon any future conversion given a certain converstion rate. Which is the case. The co stated it in its 10k: "For 1996 and 1995, the stock purchase warrants, options, and convertible preferred stock have not been included in the computation of earnings per share, since the effect would be anti-dilutive." Besides that they have restated more or less all past 10k on a frequently upon adoption of new rules and/or disagreements with auditors, and the resulting share count may be $1M, the earnings numbers seem correct. They do earn money, even when they have difficulties in cashing in due to their long-lived contracts, so they have a log of unbilled earings or assets carried on a cost basis. Along with the small float, which is -not - that heavily shorted as real fishes, I won't take it. There are bigger and better shorts out, especially co's which do neither earn money nor generate cash flows. C.

To: Safado who wrote (566)	10/27/1998 11:02:00 PM
From: chester lee	Respond to of 19428

Safado, The fundies look OK to me. Low PE and profitable. Notice the float is small. The average daily volume is about 3000 shares. Unless I missed something, this one is not a short. Network Six Q3 dil shr rises WARWICK, R.I., Oct. 26 (Reuters) - Three mos Three mos Nine mos Nine mos ended ended ended ended 9/30/98 9/30/97 9/30/98 9/30/97 Contract revenue earned $2,662,603 $3,572,313 $8,137,916 $8,418,333 Cost of revenue earned 1,535,388 2,765,551 5,140,572 6,332,039 Gross profit 1,127,215 806,762 2,997,344 2,086,294 Selling, general & administrative expenses 617,290 558,555 1,737,581 1,557,873 Income from operations 509,925 248,207 1,259,763 528,421 Other deductions (income) Interest expense 14,573 76,775 54,289 189,412 Interest earned (10,336) (2,130) (63,377) (10,684) Income before income taxes 505,688 173,562 1,268,851 349,693 Income taxes 207,552 56,872 520,452 122,393 Net income 298,136 116,690 748,399 227,300 Net income per share: Basic 0.28 0.09 0.66 0.12 Diluted 0.28 0.09 0.66 0.12 Shares used in computing net income per share: Basic 763,880 734,294 756,519 728,471 Diluted 1,065,520 734,294 1,036,411 728,471 Preferred dividends declared 85,068 47,260 252,431 140,240 NOTE: Full company name is Network Six Inc.