Replies to post #21905 on Value Microcaps Free-For-All

[bbotcs]

Samnotsamuel: ALIF

I'll buy back my shares once they get the AR number down. This is no market for taking chances on bb stocks that aren't ROCK solid.

[gilead23]

ALIF: Sam its not just net income its cash as well

They bleed cash. You can announce earnings but cash doesn't lie. My speculation is that not only are those 6 month old receivables are likely bad but many of the 4 month old ones as well and if the 4 months are bad some of the more recent billings are probably also bad.

At the very best the company has slowing growth and eroding profits. Yes they are definitely cheap on a purely net income/pe basis and a better deal at .80 than at 1.30.

In addition I believe the competition is going to get stiffer in this segment. Can they compete with EA and sony and write comparable games for a competitive price? You need fairly vast resources to write high end games and as the games get more high end they may not have the resources to do it even if their obvious financial concerns don't bother you.

Good luck. I wish all holders well but I believe that you have extreme rose colored glasses if those accounting issues are not setting off warning bells through your head.