Let's revisit the past for a moment...
A slightly edited version of an earlier post to 24601 bears repeating, as follows:
Steven Sprague's "guidance" on 2004 cash flow, specifically. You remember? It was in November, 2003, I think, following the SHM in which certain more mature board members discussed a 2005 - 2006 time frame for achieving cash flow breakeven. Your CEO actually went to the trouble to e-mail a Wavoid and contradict this sensible talk with his explanation that he, er, sorta forgot to include ramp-up costs in his version of break-even. His position at that juncture was that break-even was his expectation for 2004, if additional ramp-up costs were excluded from the model. This, in my opinion, will prove to be as misleading as his defense of the PGE revenue projection of 2001 in which--in July of that year--he defended a $21 million revenue projection, only to fall something like $20 million short. Wavoids at that time, as usual, dreamed up something else to cheer about and forgave him the egregious over-estimation.
Here is my prediction: There is ZERO CHANCE this company even remotely approaches cash flow breakeven--even if you completely eliminate all so-called "ramp-up" expenses. One would have to be completely out of their mind to think this is a possibility. Completely insane. Which, of course, describes a fair number of Wavoids when it comes to what they like to call investing.
AI
