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Ascential Software Corp. (ASCL) Message Board

  • InvestmentGuru2001 InvestmentGuru2001 Jan 14, 2002 12:29 PM Flag

    Where's the beef?

    I'm all for a substantial increase in this stock. But where's the beef?

    The current rise in share value can be attributed to pure speculation. The reality is that ASCL is "losing" money, plain and simple. Yes they made an acqusition, but the premium paid for Torrent will take years to recover. Yes, they are buying back their own shares, but this is substantially reducing their cash postion; plus, there are still nearly 240 million shares outstanding.

    For every 1 cent a share (net) profit, ASCL would have to clear roughly $4.0 million. Right now, they are losing money. Right now they are losing more than $30 million a year.

    Could management turn ASCL around? Highly unlikely. Right now, all I see is smoke and mirrors by the current managment.

    The bottom line is that the Street can't stand this company -- in the eyes of many it is still IFMX.

    PG and his buds have no real vision for the company. Their product is not well known, and IT managers are not going to risk their limited resources on an unproven company that might not be around in another year.

    Be cautious of today's upgrade to "outperform." It has PUMP and DUMP written all over it.

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    • There could be more to this upgrade than meets the eye. What if the firm sees potential from a completely different perspective than you? For example, what if there's a particular merger or acquisition imminent? You're assuming status quo ad infinitum. Why limit yourself? PG has never been satisfied with the status quo. Why should he now? I say watch for the M&A coming to a stock near you!

      • 1 Reply to justanobody2u
      • An MnA is very possible. But the reality is that even if another company bought ASCL, it would pay at best $6-7/share. Anoather ASCL acqusition will suck up more of the company's cash hoard, with no guaranty that the bottom line will improve in the short (or long) term.

        Again, don't tell me about "potential." Show me the money!

        Right now, the only money you can show me is all negative...