Technology Stocks : KVH Industries, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Roy F who wrote (629)1/2/2001 9:28:39 AM
From: Labrador  Respond to of 7013
So where will the new year take KVHI?

November, December have not brought holiday cheer to KVHI. Will the new year turn the company's share price around?

To: Roy F who wrote (629)1/2/2001 8:04:04 PM
From: Roadkill  Read Replies (3) | Respond to of 7013
Since we won't know for another month, I thought I would engage in some WAGing about 4Q numbers to pass the time.

I find the timing of this private placement interesting. Done the first business day of a new quarter, the timing suggests it could have been done last quarter if that suited the parties' interests. If KVHI had a money-losing quarter, the dilution created by the private placement would actually decrease the EPS loss. (I suspect this accounting trick is precisely why AMZN repriced its employees' stock options a few months ago, but I digress). Accordingly, if KVHI had a money-losing 4Q, it would be a great thing to dilute the shares a little at the end and use a larger number for the EPS calculation, thus minimizing the loss from a per-share perspective. But KVHI didn't do this. This suggests that KVHI, at a minimum, had a break-even 4Q. I know this was the forecast, but given the weaker economy, I was unsure of the effect on the consumer products, which still make up a significant portion of revenues.

Back to lurking.


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