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Point.360 Message Board

  • cpa38 cpa38 Aug 17, 2001 12:02 AM Flag

    You people are NUTS!

    I just looked over the financials. They are sound. Look past the income stmt and balance sheet and zero in on cash flow. This company produced .30 per share in operating cash flow for the first six months of the year. It would have been .60 per share had the payables not been paid down by $3 Million. Even if they flatline here, the company can easily generate a $1 a share in operating cash flow. The stock sells for 1.6x cash flow. That's damn cheap. It's in the cellar because of forced selling of Luke's position.

    The balance sheet is OK. The Notes Payable to the Bank had to be classified as Short Term since they are not in compliance with some debt covenants. But, there is no way the bank allows this thing to go under. It's too strong financially. It's generating nice, solid cash flow.

    Only a fool would not recognize this forced selling of Luke's stock as anything other than a wonderful buying opportunity.

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    • CPA38 writes:

      >customers will stay because they are getting value and service.

      If you really want to know play customer. Call Shelly Y. - her number is on the point dot 360 web site. You look it up. Ask her how much to get a BetaCamSP 30:00 [that's 30 minutes] from a HDCAM. She will tell you that is a downconversion and tell you a price. Now call Octane Post in Hollywood. You look up the number so you believe it. Ask them the same question. Then call another competetor - Metropolitan Entertainment in Hollywood. Ask them. Then ask yourself just how much value the customers are getting.

      Selling your stock yet?

      If you want to know the real problem Luke went out and bought a pile of fancy generation 0 HD equipment. Networks hadn't decided from the 18 HD standards what they were going to broadcast when he did this. He wanted to be first on the block. Now the networks have decided and the manufacturers are coming out with generation 1 equipment to match this. In the mean time the networks are begging the FCC to delay HD for a long time. If they get what they want - 80% they do - then by the time HD takes off it will be on generation 2. Luke's generation 0 equipment will be viewed as dark age crap that my signal is never going through. Out all that cash! Heck maybe the bank can figure out that the equipment is losing value faster than a lead brick dropped from an airplane.

      Now Luke has discovered the internet. Wow. He isn't a computer company. They (computer companies) have reduced content creation to any reasonable desktop PC. So there isn't a play for Luke there. As for hosting well maybe. But point dot 360 isn't a computer company and doesn't know squat about keeping a bunch of server computers running 99.999% of the time. He can resell someone else's time but then he's just a me too.

      Have you pushed the sell button yet?

    • oh great. now you're a tax accountant. darn, I thought you were a day time oprah winfrey, stock snooping, divorce court file reading, Luke basher. i had you pegged wrong. sorry.

      the net of historical cost and accumulated depreciation is reflected on the balance sheet. appraised value doesn't mean jack to GAAP financials unless the current FMV value of an asset is lower than the book value (historical cost less depreciation). if it is, the assest gets written down. and, tax value of fixed assets? you can do better than that. where the heck did that split finger curve ball come from?

      come on goldengirl, entertain me. I want to hear the low down on the divorce court file. spill the beans.

      the bank isn't going to pull the plug. Luke has his back to the wall. He will survive and prosper. the business will do well. customers will stay because they are getting value and service. vendors will get paid. the stock will see $6 to $8 soon. and you will disappear from this board. but, before you go .... I want the dang poop on the divorce court file. I'm bored. I'm sitting on a ton of cash. and, I'm not trading next week. Near term market direction is clear as mud. Divorce file, divorce file, divorce file.

    • yes, exactly. i am trying to hipe the stock. and, I have no diploma. i did not graduate from junior high. i was too busy hiping stocks.


    • CPA asks:

      >golden says: "this makes the recievables look great on acrual basis" how do receivables look great on an accrual basis if customers only pay once a year?

      'casue it looks like they have a pile of cash just about to come to them when in fact it may be many months off. To know the true condition of the A/R you got to look at an aging report which you ain't gonna find Luke giving you.

    • CPA,

      I wonder how much stock Luke stuck you with that you can't sell?

      I might agree with you on the chance for the stock to go up, but I know the real reason the sale fell through. You might want to look at "family" court records to see why - it won't be on an SEC statement.

      As for the default - if you were one of those 7 major studios that makes up 35% of the revenue stream - would you put your masters into point dot 360's vault where it might require a court order to dislodge them if the bank decides chapter 11 is needed? Do you really want to suddenly have to pay off all your bills to a company that messes up a significant number of your jobs just to get your masters? If you did what do you have to hold over them to get them to fix the goof they put out? That because they used "Luke's special tape stock" rather than the new stuff they paid for.

      Once word really gets out I suspect the trucks will be backing up to the loading dock and 99% of the masters in the vault will be going out to the clients. That is business that never comes back.

      • 3 Replies to goldencalifgirls
      • Hey Luke is in default on his loan.

        Now read what happens when that happens:

        You had better get all your masters out of there while you still can.

      • goldencalifgirls and others - Look, use some common sense and think this through.

        The company owes the Bank $30 M.

        The company's primary assets are:

        1. $7 M net receivables (AR less AP)
        2. $2 M in tax refunds
        3. Maybe $10 M in PPE at auction.

        The bank falls short by $10 to $12 M if they pull the plug on a company generating nice cash flow. It's probably less if vendor accounts are left holding the bag. But, the bank would still be NUTS to force the doors to close.

        Luke is stuck. He can't take the company into bankruptcy or he loses everything. He can't have his way with the bank either. He has no power in this negotiation.

        So, we have a Mexican standoff in which the bank has the upper hand and NEITHER party can afford or wants to pull the plug. And, neither should, because the company is generating nice cash flow and has a stable flow of business. And, most importantly, both parties are smart enough to realize that this issue must be resolved VERY soon before concern over it dragging out starts eroding future business prospects.

        What happens? Luke finally comes around to the realization that he must sell the business for whatever he can get. He comes around because the BANK is pounding the table now that this is what Luke MUST do. Luke has no choice. He knows he has no choice. Although he is trying to find another way out, but can't. And, time is running out. One day within the next month, he will wake up, realize that some money is better than none ... and sell.

        Bet you that he sells for between $6 and $8.

        I got mine in the low 2's. Anything higher than $6 before YE is fine with me. If it goes down the tubes however, a writeoff of a buck and change per share, net of tax savings ... was worth the entertainment of reading this board.

      • I own but a pittance of PTSX shares. I hang out here every now and then because I find the posts about Luke and Luke's wife entertaining.

        I don't have the time to chase "family" court records. I suspect it involves Luke's divorce? Hey, if they are public records, please do share the info on why the sale fell through. I'm 90% cash in my trading account and plan to be sidelined most of next week. I have time on my hands and need some entertainment.

        Entertain us goldengirl.

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