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Innotrac Anonim Ortaklık Message Board

  • inocinside inocinside Feb 23, 2003 11:34 PM Flag

    Conference call Pt 2

    For you bean-counters out there, isn't it strange that there is positive cash flow, a credit line that was hit for 14 million, all while AR is decreasing and revenues are lower than before? Even with the "special credit" dredged up as a savior, the company is losing money and bleeding. Combine this with Scott and David concentrating on expenses and not sales, with Scott himself saying that they are not looking at dropping costs to existing clients and have lost business for this fact, and having to turn away business in an economy where new prospects are shrinking (as noted by Scott) and you have a pretty bleak picture. You can only take the "high and mighty" approach to pricing for so long before your clients go elsewhere..

    My take on it (for what it is worth, which is probably very little).. Don't look for any new clients or any significant growth over the next year. Innotrac is having to do something they should have done many years ago - find profitability and compete in the real market. This will take some time, hopefully they can weather the storm and have solid enough clients to give them this time.

    The future value of Innotrac may very well be not what Innotrac is doing, but what the rest of the market is doing. God knows I would not want to bet my savings on INOC, however when compared to some other areas of the market, they don't look too bad. Guess that is why their stock is still on life support as opposed to being de-listed...