Those number mean little, I would rather look at valuation. I know you love "free cash flow" but you will never see one penny of it even if it's real and meaningful.
If the Cash Flow was so great why did they borrow $750 million?
Don't believe anything, didn't you learn from VRTS? It's all a Con.
These companies are not worth $20 billion.
wob, you're not to late to short.
After deducting Liabilities USAI has very little in Stockholders' Equity
USAI 12/31/03 Balance Sheet shows-
Total Asset............. $15.7bn,
Goodwill and Intg..........7.3 bn
Net �real� Assets.............$8.4 bn
Includes Cash & Short .Term Invsmt...$4.bn.
Total Liabilities of $7.7 bn
They have Property and Equipment of only $ 400ml, and Long-Term Investments Total $3 bn (which is probably the investment in their Subsidiaries)
They show Liabilities of $7.7 bn. USAI has very little Stockholders Equity after deducting Goodwill.
They certainly could not or would not buy any companies with cash (billion dollar+ type purchases), they can only buy with their inflated �funny money� stock.
Not sure where those stock sales come from. But if you like those, you will love when Liberty exercises their right to the same terms of the EXPE and ROOM deals and purchases enough stock of USAI to keep their ownership % equal. That should happen (assuming Liberty chooses to do it) after the deals close.
Also, what would their cash position be without them borrowing $750 ml and selling $233 ml in stock over the past 12 months/
USAI-Cash from issuing stock-
Total Cash recvd from Stock Sales...$233,272,000
Add that to the $750,000,000 they borrowed and you have over a Billion dollars. The company shows a loss and it will have over a $20 billion valuation. Is this a con?
Give it a rest?? Look, I've been very carefull about avoiding all of these posts dealing with conspiracies, manipulation, fraud etc... Even jeff can tell you from the EXPE board I never fell for that talk. Does this stuff exsist on the Street? You bet it does. Is it happening here? Who knows. My comments were not directed at Dillar specifically, while I personally don't like the guy he is definitely doing his job as you stated. BTW, I hold only a few borrowed EXPE shares and am not currently short here (read my multiple past posts). I don't cry manipulation every time a trade goes against me! In fact, I wish this MB would move on to other discussions beside fraud, manipulation, etc...