> On May 9 Net Llama! was heard saying: > > <snip> > > ->> *** On the other hand it is ridiculous the system works this way: > ->> After all they ** made ** $15M! > -> > ->I think you missed the point. They didn't 'make' anything. The > spent ->more than they took in. THey 'lost' money. > > > *** Having followed the thread I can see I did miss the point. > > I must admit I never really cared to understand how it worked... until > today. If somebody feels like giving me a short HOWTO on capitalism > ;-)... > > What I read and understood was that their forcast was $18M while they > have "done" $15M and their share value went down. Maybe I missed it, > but where do I see that they spent more than they earned? > > Just a warning: I am a straight ** 0 ** in this matter! :-) > > Cheers, > Zoran. > --
If you really want to get into the ugly details you should download their full results. However, the essential part I think you missed was that they had a LOSS of $0.23/share or $0.28/share..I forget which. What it means is that they spent more than they made ie. had a negative profit (a loss) and when the loss was divided by the number of shares that have been issued it gave the above result. In other words, Caldera and the analysts seemed to believe that they would sell around $18M in revenue but they missed and only got $15M. By the way, losing $$$ although never good is acceptable as long as there is a plan to get back to profitability and the company is tracking to the plan. The key is that the market place absolutely does NOT like surprises. Not meeting the targets that everyone expects will most certainly bring down your stock price...and that will cause the company's management to change, layoffs, and eventually the company will go broke if it isn't corrected. On the other hand Cisco announced on Tuesday night that they had a great quarter beating their projected results (I think everyone expected + $0.02/share and they came in at around + $0.08/share. Their stock price soared on Wed and the entire market took off. The Dow average went up 350 points...the largest gain in one day since 1994. This was based on speculation that we may have turned the corner on the recession and people are starting to place orders for telecommunications equipment again. Gerry -- "The lyfe so short, the craft so long to learne" Chaucer _______________________________________________ Linux-users mailing list - http://linux-sxs.org/mailman/listinfo/linux-users Subscribe/Unsubscribe info, Archives,and Digests are located at the above URL.
