Replies to post #106776 on Zeev's Turnips Patch-No Politics (ZEEV)

[caddman]

kron,

I like XMSR...looking for a pull back in a few weeks to 7.00, then another high, in the upper 12's.

Fundementally they will beat Sirruis. More auto manuf., boom box, and home kits for Delphi receiver. I have 2 subscriptions myself.

However, the new debt deal with GM and other bond holders done in Jan. will allow debt holders to convert to stock on a 3.5ish basis. If all the options are converted, then the float will double. That is a lot of dilution over the next few years!

Ride it, it is fun.

caddman

[Zeev Hed]

I really do not understand the extreme strength in XMSR, it has a market cap of $1 B and despite having revenues at an annual rate of let say $40 MM it has lost some $160 MM in the last quarter alone. It has only some $60 MM or so of cash and bleeds $160 MM per quarter? That is a cash crunch coming. Apart of that, what is the market potential for their services? Anyone using them here, what is the monthly charge? I for one doubt that more than 20% of the population really wants that service (I know I will not buy it), so a billion bucks a year might be all that they will have as revenues in the future, a cap of that same value seems steep to me. Oh got back in CCMP here at $46.34 got to have something to ride on.

Zeev