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Strategies & Market Trends : Low Price/Cash Ratio Value Stocks -- Ignore unavailable to you. Want to Upgrade?

To: MCsweet who wrote (164)	6/6/1999 7:17:00 PM
From: Bob Rudd	Respond to of 1931

MCsweet: <<preferred stock is just another form of debt>> For purpose of net-net analysis that would work ok, but if you're doing analysis that contemplates liquidation, the preferred is subordinate to all debt and senior to the common [Though there are times when it gets treated with no more respect than the common in liquidation] The Sr VP and CFO sold a chunk of their holdings in Nov at just above these price levels. There's been no insider buying since then tscn.com 5 out of 5 analysts that follow it have a HOLD on it. HOLD is analyst talk for SELL. I haven't studied this co but it appears they are on the fringe of ERP area where there's contemplation of 2nd half Death Valley leading into y2k and the big boys like SAP, Peoplesoft, JDEC are looking everywhere to make up for sags in core business. Very tough business environment...also standards are important. Perhaps the reason the insiders lack enthusiasm is that these guys are getting squeezed out or missed a tech turn. Again I haven't studied it...just throwin out ideas. Both net income and operating cash flow are down over 30 % for 6 months ending Mar 99 compared to comparable period last year. I can't get to excited about this one.