The reason money is flowing out of Avid and the reason the smart money is shorting is simple. Avid had one of the worst quarters in the company's history.
Just pay attention to DTV's posts. He's a company paid shill and mentioned that it would be dumb for managment to exercise options before year end - as it triggers a taxable event. What a laugh! Management exercised as many options as humanly possible, just before year end, right under DTV's nose (is DTV lying?).
Sugarr might be right, and dtv is just an idiot, but who knows?
The cash increase for the quarter is 100% option exercises - the whole $11 million! Management states this clearly in the CC, albeit in a quick introductory sentence, designed for all to miss. I wonder why?
Furthermore, top line sales growth year to year is negative by 4%.
The 4th Q's eps is the result of applying a 6.7% income tax rate for the quarter, while the 2001 YTD avg rate is over 35%! This fudge factor alone, if corrected, would drop GAAP Eps to just 10 cents per share - look it up.
Then, the CFO is asked what "operating cash flow" was for the quarter and gets a convenient case of amnesia. He claims he doesn't know as he didn't bring that schedule. Sure. The amnesia is the direct result of operating flow being ZERO or NEGATIVE. That is, the company's earnings are NON CASH mumbo-jumbo.
Even the corner grocer knows his cash flow, so the CFO is either lying or incompetent.
We all know the answer. As I write, management their shills (eg. Ingrassia from Roth Capital) are pumping out press releases as they sell as fast as they can.
1st Q 2003 will have dilution that will kill even the dumbest long.
How'd I do Sugarr?
Hope you're fully short.
This is not all, just the tip of the iceberg.
This company is a smoke and mirrors, pump & dump scheme. Just check out the numbers.
There's a reason it has a cumulative net loss since its inception in excess of $250 million! Imagine owning this entire company and be sitting on this kind of career performance.
Imagine, management cashing in options and making millions selling them in the 20s. Why did everyone say this was a blow out quarter given the above, easy to substantiate, facts?
Because the institutions and management are fleecing the public (thank you Sugarr).
"Just pay attention to DTV's posts. He's a company paid shill and mentioned that it would be dumb for managment to exercise options before year end - as it triggers a taxable event. What a laugh! Management exercised as many options as humanly possible, just before year end, right under DTV's nose (is DTV lying?)."
I have not commented on options yet with the exception of some sarcastic comments. Your semper alias was called out over a month ago by someone else. Go back to the Illuminati and get the role playing correct with your various personalities.
It doesn't matter. The institutions will push it up no matter what's said here. They aren't through. Just continue shorting, little by little. Eventually, the floor will come out.
What's said on this board really means nothing, remember that. The professional short sites will target Avid in due time. This pump & dump scheme can't go on forever. Management's rush to exercise before Jan 1st, even though they'd have to pay taxes, immediately, is a clear sign they are selling fast and that the scheme is coming to an end.
My eyes glaze over whenever I attempt to read a 10K/Q but I do know that there are people like yourself at large firms that scour them for clues as to the real financial numbers. Then they either sell or buy the stock (quietly) and that shows up in the technical indicators I follow.