Microcap & Penny Stocks : Sanctuary Woods recent sale, should you own the stock?


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To: Bart Sampson who wrote (126)2/19/1997 5:51:00 PM
From: Kent Kuo of 341
 
Hi again!

Well some quick and dirty reading of past and even my own
postings suggest the following:

9/30/96 2/14/97
Net Loss $420,259 $1,537,857
Sales $1,175,972 $1,201,782

You can compare this to last year's numbers, but this would
produce a relatively meaningless number since they wrote off
all of that stuff last year at this time.

What concerns me is that their sales gained a total 2% from
third quarter to fourth quarter while their expenses have
climbed ($400K for Sales/Marketing, $100K for shutdown of
the Toronto office, $138K for bad debt from weak distributors,
and $106K for interest expenses). Now if the sales/marketing
were working...sales would climb appreciably. I guess the
question to ask is....how long does it take for an ROI in
the sales/marketing sector?

Comments? Thanks, Kent.
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