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Re: sarals post# 944

Wednesday, 02/20/2002 1:52:54 PM

Wednesday, February 20, 2002 1:52:54 PM

Post# of 2893
Sara, Josh & Co.

Hey aren't we getting a little OT here? Respond to the message, not the messenger! Instead of targeting BR's motives and "what" he should be posting, try dealing with what he posted.
Simply put, after reviewing the SEC filings he concluded that the company was suffering from negative cash flow (true) and that it's present, documented cash on hand was insufficient to meet the cash flow needs for an extended period of time (also true). He then made a supposition that for the company to continue an influx of cash would be needed (also true). He then postulated that the source of that cash would have to be more debt or more dilution. While these are not the only options, they are the most likely given the history of the company and it's management.
None of this means the company is likely to close inside of sixty days. While possible, it appears that management is not ready to pull the plug at this juncture. More debt or dilution or both would at best halt any upward movement for a time, at worst they could cause a serious resumption of the downtrend. Depending on the amount of cash raised, the method of raising it and any resulting growth we'll soon see where the share price ends up.
Even TA indicates that we may be at the beginning of a period of consolidation. It will take time to digest the gains from the last few months.
As for what one should do with all of this information?
Apply it to your own experience and risk tolerance and act accordingly.

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