Fri, Nov 28, 2014, 12:56 AM EST - U.S. Markets open in 8 hrs 34 mins


% | $
Quotes you view appear here for quick access.

Entertainment Gaming Asia Inc. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • pjv2xyw9dww4b5 pjv2xyw9dww4b5 Sep 16, 2006 6:47 PM Flag

    time to short vnx again?

    Share price is not the number I like to use when considering selling short the stock of a company.

    Instead, the first thing I do is pull up the most recent 10-Q/10-K, find the most recent number of shares outstanding, and multiply that by the current share price to get a market capitalization number to keep in mind as I look at the financial statements.

    With VNX, for example, I go to and find "27,015,627 shares of common stock, $.001 par value, as of July 31, 2006." Multiplying 27,015,627 by $2.33 gives $62,946,410.91. The market thinks VNX, the company, is worth over 62 million dollars.

    I think the company's value is less than $62 million.

    Total assets (06/30/06) are only $16,355,778. The market thinks the company is worth nearly four times its total assets! That might be reasonable if the assets were owned free and clear, but the company is "upside-down" since shareholder's equity is $(2,530,003).

    Shareholders' deficit is $(76,867,855). Not only has VNX been losing money recently, but overall, it has lost over $70 million, some of it since the recent management change.

    Being short 69k VNX could be an error, but I'll take my chances, as I think the company's current market capitalization wildly overestimates its value.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
0.54+0.0600(+12.50%)Nov 26 3:57 PMEST

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
SeaDrill Limited
NYSEWed, Nov 26, 2014 4:01 PM EST
Transocean Ltd.
NYSEWed, Nov 26, 2014 4:01 PM EST