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Originally posted by MEA_1956
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To buy stock in a company because "Techs are in my favor" is a bit dangerous. Look at the individual company's fundamental health....
Below is an excerpt from CAMP's financial report filed last night.... It seems to me that the only reason they'll have any positive cash flow moving forward is due to the $9 million settlement from Rogers on 1/12/09, and that's all but spent.... What happens next quarter?.... Maybe there's a valid reason this stock is down 82% since April 2008.... and down 99%+ since it's peak in 2000?
Listen to the CC (link below).... During the Q/A session the second analyst asking questions has them pegged (37:00 minute mark).... The math does not work out.... NO positive cash flow moving forward unlesss they can convert inventory into cash, which means increasing sales (which are forcasted lower) OR reducing prices to move inventory, which would decrease the value of their inventory (which is accounted for as a considerable asset on the balance sheet)....
The president stated at the 41:23 minute mark that forcast revenues were "contengent on the economy NOT continuing to deteriorate" then he literally choked up as he swallowed...
http://biz.yahoo.com/cc/7/99887.html
At November 30, 2008, the Company had total cash of $5.7 million, with $25.2 million in total outstanding bank debt and a $4.5 million note payable to a key DBS customer. Net cash provided by operating activities was $2.5 million for the three months ended November 30, 2008. For the nine month period ended November 30, 2008, net cash generated by operating activities was approximately $3.3 million. During the latest quarter, the principal on the Company’s bank term loan was paid down by $750,000 and the principal on the note payable to the DBS customer was paid down by $528,000.
The Company was not in compliance with one of its financial covenants at the end of December 2008 that requires a minimum level of wireless datacom revenues on a rolling three-month basis. The Company has requested a waiver of this covenant violation and is currently in discussions with the banks, but thus far the banks have not waived this noncompliance. Consequently, the Company has classified the entire term loan balance as a current liability in the consolidated balance sheet at November 30, 2008.
On January 12, 2009, the Company received a cash payment of $9 million from Rogers Corporation in an out-of-court litigation settlement. Under the terms of the Company's bank credit agreement as amended, the Company is obligated to pay 50% of the net cash proceeds of this legal settlement, or $4.1 million, to the banks as a reduction of the term loan balance. After giving effect to this principal payment, the balance of the term loan is approximately $20.3 million. The Company is continuing to seek a waiver of the covenant violation referred to above, and expects that it will ultimately refinance the bank debt from the proceeds of an asset-based loan at or before the December 31, 2009 maturity date.
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