MicroStrategy Inc. (MSTR) Message Board

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Technology Stocks : MicroStrategy Inc. (MSTR)

MSTR 509.39

+0.7%

1:46 PM EST

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To: Glenn Petersen who wrote (682)	8/2/2001 12:07:54 AM
From: Jay Fisk	Read Replies (1) of 715

A couple odd items that need explanation: 1. How did the $25 million in restricted cash get tapped? Wasn't that supposed to stay with Strategy.com? 2. They claimed a $25 million gain in litigation settlement. In the past, litigation stuff was not part of the pro forma, but I guess since it's positive, they'll throw it in. 3. They claimed an additional $11 million for refinancing the Series A preferred and $18 million for conversion, resulting in a net loss of $5 million. Now if we really took out the one-time items: $25M litigation $11M refinancing $18M conversion That's a total of $54M in earnings adjustments that only occur once. Adjust accordingly, and the quarterly loss is around $60M. Considering revenues were $49M, they've got a long way to go to making money. Burned another $30M this quarter. It's not looking pretty. For all the longs: I can't see how you consider this an improvement. These guys are doomed. Do you really think the current valuation of $300M is justified? I don't think MSTR is even worth the amount of debt they currently have. ---------- Courtesty of an opinion found on Yahoo

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