One Step Ahead

[Bo14172]

GM all, SPEA is Netscapes headline, CNBC this morning.

Guys, look at it from a bottom line book value to PPS ratio.

Lets take 2 market darlings and compare it to SPEA, which in my opinion will be equal or greater than these in terms of a investor favorite, thus a market darling.

TASR's net income for the last 4 quarters totaled only 16.97 million dollars. If you hear or read anything about TASR (INCLUDING THEIR PR's) it is clear these guns pose a great saftey hazard. They have been possibly responsible for dozens of deaths already. In their pr they state how much of a saftey hazard for kids these are. Lawsuits are a likley consequence for the forseeable future.

TASR's O/S: 58 Million Shares
Yesterday's Close: $27.31

Sirius Radio's financials worsen everytime I look at them. They just reported the quarter ending September 30, 2004. For the last 4 reported quarters SIRI's GROSS INCOME WAS ONLY 41.64 Million Dollars. The company's debt structure deepens as their bottom line sucks. Over the last 4 quarters they have LOST (598.07 Million Dollars)! The trend also does not look good financially. When you look at the Q3 vs Q4 numbers, the GROSS INCOME only increased by 5.9 million dollars (13.23 Q3 vs 19.12 Q4), BUT their NET LOSS went from ($136 Million) in Q3 to ($169 Million) in Q4!! Their gross income only rose a modest $5.8 Million during the last quarter, while their loss totalled $169 Million, and rising $33 Million during the last quarter.

SIRI's O/S: 1.26 BILLION Shares
Yesterday's Close: $7.18

SPEA's deal buys the majority interest EPE, which is an on-going concern on target to once again EARNING $50 million or more this year. As exposure of EP continues to increase world-wide, continued and growing earnings are a lock. If investors world-wide want to own stock in Elvis, they will be buying SPEA.

SPEA's current O/S: ~4.5 Million shares!
It is not confirmed how many shares are needed to close the deal. The deal said the shares given to Lisa Marie and the Presley Estate will need to be value of around $20 million dollars. Here's the quote:

"The agreement will pay her $53 million in cash and absolve her of $25 million in debts owed by the estate. She also is to get shares in the new company expected to be worth more than $20 million." Link to the entire story: http://cnn.netscape.cnn.com/ns/news/story.jsp?idq=/ff/story/0001%2F20041216%2F2134821634.htm&sc=....

Even with these shares (estimated 34 million), the O/S and certainly the float will be well less than even TASR (58 million O/S), which has less earnings, exposed to litigation with it's potentially dangerous guns, and yet closed at $27.31 yesterday!

This stock is very much in play for those that get in today.

Be well,

Bo