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  • lawbrig lawbrig Dec 23, 2009 12:38 PM Flag

    Motley Fool - 5 Deathbed Stocks

    Motley Fool looks foolish listing ACOM as a "deathbed stock". ACOM's current and quick ratios are low because the company carries a high level of deferred revenues, which is (in this case) a good thing as it represents a cheap source of financing. These deferred revenues will eventually flow through the income statement and drop to the bottom line. ACOM has plenty of liquidity and is generating decent profits. As long as they keep expenses under control margins should improve as they grow the customer base. This is hardly a "deathbed stock".