tag:blogger.com,1999:blog-7294165939647321702.post2001531216772792013..comments2024-03-28T13:45:43.362-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: Common Comes LastSaj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-7294165939647321702.post-33987338455453281722010-02-27T22:46:57.540-05:002010-02-27T22:46:57.540-05:00I think the post on ENWV was clearly an attempt to...I think the post on ENWV was clearly an attempt to alert readers to the perils of simply accepting the results of any screener. I had a similar post on ENWV back in December at http://chromainvesting.com/2009/12/31/endwave-enwv-a-ncav-stock/<br /><br />For clarity ENWV ended 2009 with $55.2 million in cash. According to their 8k dated 1/21/10 they paid $36 million to Oak Investment Partners for their Preferred shares thus reducing their cash position to $19.2 million. While they do have other assets one should be careful about calling someone incompetent when your own figures are inaccurate.Chromahttp://chromainvesting.comnoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-17045015653073306912010-02-26T15:29:49.587-05:002010-02-26T15:29:49.587-05:00Thanks, Andrew!
Hi Anon,
You are right: since th...Thanks, Andrew!<br /><br />Hi Anon,<br /><br />You are right: since the company's last financial statements, they have bought back the preferred shares. But note that this reduces the cash balance as a result! This post was not intended to be an update of Endwave's cash flow, but an illustrative post on how a margin of safety may appear to be there, but may not be depending on the presence of shareholder liabilities that are not formally classified as liabilities (i.e. preferred stock).Saj Karsanhttps://www.blogger.com/profile/04493152766022812984noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-51911840557576953172010-02-26T09:43:47.334-05:002010-02-26T09:43:47.334-05:00This is a very incompetent post. On January 21, E...This is a very incompetent post. On January 21, Endwave bought back the preferred at a discount and now has about $30 million in cash, or $3 per share. Given that, why would someone post a story about the negative implications of the preferred on February 26?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-55982450158026952382010-02-26T08:58:49.934-05:002010-02-26T08:58:49.934-05:00Another stock with this exact situation is thestre...Another stock with this exact situation is thestreet.com (TSCM), as of a month ago it was trading at only a slight premium to net current assets with a historically profitable (only 3 years and not in 09) and cash flow generative operation. <br /><br />The preferred stock on the balance sheet was listed at 55 dollars par value (which initially you would assume has some claim but doesn't appear to be the death blow at first glance)... check the footnotes and you find that that par value of the preferred is 10k per share which equates to 55M senior claim to common. Which basically equals the entire cash balance. <br /><br />thanks for the blog I like your style, there aren't to many people out there who are willing to suffer the negative publicity and lower readership that comes with consistently detailing while particular equities are not good investments.Andrewhttps://www.blogger.com/profile/14419480516695273356noreply@blogger.com