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Technology Stocks : Open Market (OMKT) -- Ignore unavailable to you. Want to Upgrade?

To: Bradley W. Price who wrote (1249)	3/20/1999 7:54:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 2004

Bradley, I spent a little time reviewing the Sep Q 10Q, and I have difficulties finding good reasons to be bullish on the stock (except the fact that CMGI acquired a respectable chunk at prices similar to current prices). Sales have been declining recently, despite three acquisitions during the last year, the company is bleeding at the rate of $6 to $8 MM per quarter. Their accounts receivable indicate to me a situation where special incentives had to be given to clients to buy (these are at $25 MM vs quarterly sales of less than $15 MM, or an average of five months sales, outrageous). On the surface it looks as if they may have some very tough times ahead. Why are they factoring accounts receivable when they have $40 MM in short term investments and cash on hand? Is this an exercise for when cash may becomes tight? Typically a factorer will pull 10% to 20% off the top but I doubt that OMKT earns more than 6% on their cash hoard, that sounds like poor financial management. Looking at the numbers only, I am not surprised that shorting vultures are circling around this stock. There must be a good reason not present in the numbers why so many are bullish on this company. I wonder if someone could summarize these? Thanks in advance. Zeev