TheDirectory.com Inc (SEEK)

[Carini]

SEEK is not cash poor? Have you read the latest 10-Q? Cash and equivalents was $7,750. Accounts receivable $376,398, but accounts payable and accrued expenses = $613,842, not to mention over $1 million in notes payable.

Revenues for Q1 were $801,535.
Revenues for Q2 were $477,973.
That's about a 40% drop in revenues.

Net income for Q1 was $212,748.
Net income for Q2 was $179,764, and that was with a $148,000 tax benefit.
Take away the tax write off and Q2 net income was $31,764.

Now add in the cost of a national advertising campaign in Q3, plus that $250,000 balloon payment due before October 1... and how do you get to "SG is not cash poor" and has no reason to dilute? Not to mention the O/S that has been increasing by 300 million shares a month since July 1...

And SG has also repeatedly stated that seeking buy out is exactly the reason why he would consider a R/S in the future.

IMO the clear plan is to max out the O/S in the next couple months, take the PPS down to the low trips, R/S in early 2015, and then repeat the cycle on a rumored buyout (that will get PR'd to oblivious and never materialized probably) with a whole new crop of future bagholders.