Replies to post #31609 on FAT CATS

[serfdom]

GEMS looks like a superb bottom play to me Cheez - you got a lot of blue sky above ya...and she's on the verge of breaking out of her downward channel. I don't think you could ask for a better entry than this.

[serfdom]

This is what killed 'em back in March IMO:

Guidance

For 2007, the Company expects EBITDA to grow at roughly the same rate as 2006. While the Company is focused on cost reduction initiatives, EDC is directly impacted by the trend in sales of CD's and DVD's. The Company's assumptions are that CD sales globally will decline by roughly 7%. There has been an acceleration in the rate of decline since 2006 and the Company is closely monitoring these trends as a further deterioration in the month over month sales of CD's and DVD's will certainly impact EBITDA expectations for the year.

On March 6, 2007, the Company filed a Form 8-K reporting that it would restate financials for certain prior periods and that these restated financials will be included in the Form 10-K for the period ended December 31, 2006. Therefore, the Company's prior financial statements and the related reports from the Company's independent registered public accountants, earnings statements and press releases, and similar communications issued by the Company relating to the fiscal periods commencing on or after January 1, 2000 should no longer be relied upon.