Replies to post #80588 on TheDirectory.com, Inc. (SEEK)

[DTrader90]

PLEASE MOD sticky this one:

What is everyone talking about?! I just reviewed the Filing. Why do we care about profit? Why would TheDirectory.com want high cash reserves that are depreciating at the rate of inflation in some bank account?

The fact that they pulled in 1/2 million in REVENUE and only had 6k in profit, tells me that they are re-investing back into the compnay. And this is what you must do if you wish to do a complete market grab in the industry.

The only thing I find disturbing with the Filing is that Scott needs to educate himself a bit more on how to do these filings. Firstly, depreciation has nothing to do with cash. It should not be in the cash-flow sheet. Secondly, cost-of sale, commission, wages... all missing from the cash-flow!!! Thirdly, balance sheet... You did a good job listing all your tangible assets, but what about the intangible ones? Any intellectual property??? Any brand recogniztion? Your liabilities... which are current which are long term??? I could go on and on. I would suggest you get someone on your advisory committee that can fill in this gap in your company skills matrix.

Other than that, pretty good filing. GO SEEK!

we will rock !! GO $SEEK

[Steel Penny]

This may have already been spoken to but just to point out - on a cash flow statement (CFS) "depreciation" does have a place. On a CFS your starting point is NET PROFIT (NP). Then you add back those expenses that you used to arrive at NP but which did not use cash in the current period (in this case, the current year) and you will also deduct those payments of cash that were not current period expenses (i.e., Repayment of Loan Principle). As you examine the Statement of Cash Flow you have to really keep in mind what you are being told.

Just so you know, I'm not a geek about Fin Stmts but I was a CPA in another life.

GO SEEK & GLTA