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.
The article was focused on "content only" sites, exactly the same type of BS that Ivillage blows. The reality is that the days of, and how did they say it, hope and hype nonsense, are long gone. Anyone with a few working brain cells can clearly see the horrible fate that awaits companies such as Ivillage. They continue to lose cash at a staggering rate, and frankly, per Ivillage's latest financials, Ivillage will be cash-broke by the 4th quarter of this year. With the growing number of internet failures increasing each week, by the time Ivillage is broke, the momentum against internet-only companies will be incredible. No one in their right mind would touch a company like this, long term. Shorting it only makes sense, and that won't change until they close their doors.