'Idea of the day' trading in and out for profit

[AlienTech]

I think the EXDS report was very good. With great forward guidance. And they want to open a very very large data center in santa clara because the current one is out of space. With more than a 100% kump in short intrest in the last month, you got to expect them to pull some stunts to paint the most negative picture. Short intrest was 60 mil end of june, probebally much higher by now.

>>>>By: IhateGreenie $$$

What the he11 is this idiot talking about?
Does this guy know how to read a balance sheet? First of all gross margins, excluding restructuring and asset impairment charges, were 23 percent of revenue or $74.7 million. But that number includes depreciation and amortization of $63.1 million. Gross margins were 43 percent of revenue or $137.8 million if you exclude depreciation and amortization. If this person excluded asset impairment charges then why not depreciation and amortization?

Second, the guy said "these are terrible times for raising money". Uh hello, in the conference call they gave several options for raising more cash. One of the major ones was a sale and lease-back. It doesn't matter what shape the economy is in for a sale and lease-back.

Third, the guy said "With just $466 million in cash, and a cash burn rate of $140 million a quarter, they just don't have much time." EXDS said they had $616 million in cash so I'm assuming he is figuring in the repaying of their $150 million loan that was done after last quarter ended. But, if this idiot would look at the cash burn it's mostly due to capital expenditures. In other words they are spending that cash by choice. But let me also say that that cash is being transfered into assets, it's not evaporating. So even though their cash is going down their asset value is increasing. And they have said that capital expenditures will slow to a halt in the next few quarters. So basically since the company is EBITDA profitable, all they have to do is pay interest of $75 million per quarter on loans. If they have $200 million in the bank at the end of 2001 that would give them 2 1/2 quarters of cash left. But that is only if EBITDA remains around breakeven. They expect to post EBITDA of approximately $65 million in the next 2 quarters, so I imagine next year it will be even higher. Basically they don't need to raise anymore cash. But they are because it's always nice to have a cushion. Assuming their revenue doesn't start rapidly dropping, they have plenty of cash to reach breakeven.

Fourth, "Any rally in the stock is likely to be very short lived, as this is about as dark an income statement as you will ever see for a company with more than $1 billion in revenues." Sorry buddy, I think JDSU is much darker. You are clueless.