Tuesday, February 14, 2006
Back in Q3, I had said:
Here's the important part: they hit a brick wall in terms of revenues. They sort-of hit the wall last quarter, but at that point, it wasn't clear enough. Now it's right there. Brick wall. Why, it's not entirely clear, but they claim the earnings are down due to working on a new product which could make sense. Normally this would be capitalized and amortized over time and show up as a shift in assets on the balance sheet.... With a small team, a new product development could be taking focus away from growth in the current market segment (just letting it run on autopilot). I don't know.At that time, I had dumped "about a third of my investment" and I was surprised to not take a loss. I had sold the last of my stock today (along with some earlier) and was going to take LVWD off the list of current investments. The reason: unhappiness with google searches lately as well as finding another investment that will show up here soon.
In Q3 they had really hit the wall. In Q4, they were sliding down the side of the wall. Comparing Q4 to Q3:
Revenues were down about 1.6%. Net income was also down slightly. Fully diluted share count is 46.98 million, up slightly from 46.88 million. Net profit for the full year was $1.26 million or about 2.68 cents per fully diluted share, so it's selling for about a P/E of 15 at 40 cents.
As far as management goes, they've been honest and up-front about everything. I have no complaints.
and of course they're using a Mac.