This came over the wire this morning - looks like the beginning of the end for several of these content only sites - like IVIL. I still can't believe this POS was trading close to 130 at one time. Too bad the days of EASY shorts are over - but this dog has some juice left in it. Remember, any bankrupt candidate can be shorted prior to Chapter 11 for a nice gain - this one is definitely on my radar. Good luck!
Friday March 31 8:27 AM ET Auditors Question Drkoop.com's Viability NEW YORK (Reuters) - Independent auditors for drkoop.com Inc. (NasdaqNM:KOOP - news) have questioned the online health-care network's ability to continue as a going concern, the company's annual report said.
This is the most recent in a string of warnings by auditors that the viability of some Internet companies is on shaky ground.
Online grocer Peapod Inc.'s (NasdaqNM:PPOD - news) recurring losses may have depleted its available cash, auditors said, and online music retailer CDNow Inc. (NasdaqNM:CDNW - news) may not have enough cash to see it through the year.
A company spokesperson could not be immediately reached for comment.
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drkoop.com, founded by former U.S. Surgeon General C. Everett Koop, went public in June 1999.
The annual report said, ``We have received a report from our independent auditors for our fiscal year ended December 31, 1999, containing an explanatory paragraph that describes the uncertainty as to our ability to continue as a going concern due to our historical negative cash flow and because, as of the date they rendered their opinion, we did not have access to sufficient committed capital to meet our projected operating needs for at least the next twelve months.''
In the report, filed on Thursday, the company details a number of its revenue-generating operations, and says that its business is difficult to evaluate because of its extremely limited operating history.
Shares of drkoop.com closed at 6 1/4 on Thursday, off a 52-week high of 45 3/4, up slightly from a low of 5 1/4.
as there was a segment on Bloomberg TV discussing the bleak prospects of the internet sector. Analyst was projecting a number of months before sector would rebound, if at all.
On positive side, I do not forsee IVIL filing for chapter 11. However, I can see the stock easily declining to the $13 - $14 support level. I'm looking to possibly buy back into the stock. However, I'll wait for it to stabilize first as I do not want to attempt to catch a "falling knife".
Could I be wrong? You betcha! I was one the message board posters who had originally projected IVIL to be trading in the lower 30's by the end of this month. A lot of bad press coming out regarding the entire internet sector. That, coupled along with the negative Barron's news artcle two weeks ago, has really sunk this stock. Again, good luck to all.
IVIL is tanking because it, like the entire e-com sector, is hopelessly buring through cash with no profit plan to bring it back. The e-com nonsense, when its all said and done, will go down as the biggest scam of the past 50 years. The rats (blissful, ignorant retail speculators) have followed the piper (those who launched the e-scam companies, then cashed out at the speculators expense) over the cliff. I, for one, feel no sympathy for those chasing a "get rich quick" scheme, then come to find out they just lost it all due to greed and denial. This e-com nonsense is crashing, and nothing will save it. Amazon will be one of the final holdouts, but they too will die.
Only the "click and mortor" companies will survive. Straight e-com cmapanies are DEAD.