Circa Pict. & Prod. Co. Intnl Inc. (fka CPPD)

[ron2w]

Couple of days ago we had some fun playing around with earnings in order to guesstimate a pps for QBID, placing much emphasis on P/E ratio

Following up on 11947 from RB "QBID Investors Forum" it really is fascinating to spend 10 minutes perusing the profile, income statement, balance sheet, and other links for SIRI at:

http://finance.yahoo.com/q/pr?s=SIRI

These guys don't even have earnings, but are losing money hand over fist, yet they closed today at $2.22!

Check "Profile" for example to see:

"For the six months ended 6/04, revenues totaled $22.5 million, up from $3.7 million. Net loss applicable to Common totaled $280.9 million, up from $60 million. Results reflect subscription base growth, offset by the absence of debt restructuring income."

Not only that but per:

http://biz.yahoo.com/e/040809/siri10-q.html

they have only a half million subscribers:

"As of June 30, 2004, we had 480,341 subscribers as compared with 261,061 subscribers as of December 31, 2003."

You'll also see there:

"The useful life of our satellites, which have experienced circuit failures on their solar arrays and other component failures, and are not insured." Talk about risk!

And from:

http://finance.yahoo.com/q/ks?s=SIRI

you'll see:

"Shares Outstanding: 1.24B
Float: 1.22B"

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Summary:

They've got a few less shares in the float than us (though hardly that much less if Frank owns half the outstanding and may buy back some), plus we don't as yet file.

And no guarantees, but just imagine where we could end up as we blow by SIRI's 480,000 subscriptions, start to bring in positive earnings to boot, etc!

Just goes to show how conventional wisdom (particularly P/E Ratio) doesn't always have to hold in the stock market!

Ron