3SOF

David. If our fearless leader is worried then I am more than worried. Mortified might be a good word. I will not hold my stocks much lower than they are now. I must cut my losses at some point and move on. The sad thing is that I had just traded my way back up from my previous loss. At least what I lost today was the houses money and not my capital. Have a great day!!!

I'm still holding my CPNE.OB and my ETLT. I did not buy more of either.

  Just roll with the punches guy's!!! Tomorrow is another day. Today was just one day in a long line of days yet to come. 

Quote from: Michael on February 26, 2007, 02:56:44 PM

Quote from: trexkerry on February 26, 2007, 10:16:47 AM
No, paying off long term debt does not reduce net income, it is strictly a balance sheet item, much as if you issue long term debt for cash flow purposes you do not report the proceeds as net income.  They will benefit from not having any more interest expense as a result of this, so net income will be higher in the future as interest expense decreases net income, but the payment of the debt itself did not have any impact on net income. 

TrexKerry you are right and I was wrong. Net income is the same no matter what you do with it. I don't know what I was thinking. I guess that I just could not get past the part of them paying it with cash earned from operations. Thanks for setting me straight. I am not a rookie investor it just seems that way today. Sorry guys. 

Question. What would the net income have been if they had not used the cash flow that the company was generating to pay of the debt?
For instance  I pay my bills each month from the cash flow that my job generates and each month I have money left over. Thats net income. If I have an unexpected bill show up that month then my net income would be less in that month because of the extra expense that is not a part of my normal household operations.

[/quote
No, paying off long term debt does not reduce net income, it is strictly a balance sheet item, much as if you issue long term debt for cash flow purposes you do not report the proceeds as net income.  They will benefit from not having any more interest expense as a result of this, so net income will be higher in the future as interest expense decreases net income, but the payment of the debt itself did not have any impact on net income. 
[/quote]



I'm sorry Trex but, I am going to have to disagree with you on this issue Since the company stated that they paid the debt off with cash EARNED through the business in 06. If they had not of used that Cash flow to pay off the debt it would have drifted to the bottom line.
If they had of used cash that was already in the bank to pay that debt then it would not count towards the net income.
Interest expense will be reduced to nothing unless the company decides to take on more debt, but they really don't need to at this point because the company is generating cash on its own.

Hey everybody!!! What would have CPNE have earned in net income if not for the expense of retiring that 5 million in debt?  Now thats worth talking about!!!!!

I have always been the type of investor that panics and sells at the bottom even though I thought I knew better. Then I would look at the stocks a few months down the road and it would have doubled in price and all of the same people that I use to discuss the stock with on the message boards would be saying "man I sure am glad I stuck it out and was patient. All the weak hands got shaken out a few months ago" hahaha ha" Its not so funny when your one of those weak hands. I am trying to focus on the big picture for CPNE.OB and the long term potential this stocks has. I think that being here on this board with all of these polite and informed people(much different from yahoo boards) will help keep me a lot calmer and help me to regain my confidence in myself.

jmmcar,
That is exactly why I would not sell the stock today in fact I bought more. I need to see the financials to get a complete picture of the quarter. I think the quarter was better than most people thought it was. Yes sales were light but, we also should remember that the last three weeks of december were not figured into the equation. 1st Quarter 07 could be a shocker!!!

Hello everyone!!
I was wondering if any one could tell me how much interest expense CPNE had to pay out in this quarter for the retirement of the 5 million in debt that they had. This number could have adversly affected quarter in a negative way and should be deducted from the bottom line. This would fall under the category of Non recurring expenses or one time charges. Since CPNE has retired most all of their debt this will not be a charge to EBTDA in the coming quarters.

Hey Dave. I know you that you don't like to buy more stock when a stock is going down, but I could not resist buying more CPNE.OB at these prices. I don't think the quarter was all that bad but they did miss what wall street was expecting so they must be punished. I think we will get a good bounce towards the close or maybe tomorrow. Good luck with TRMM.

Hey David is CPNE making you nervous yet?? What do think it will do over the next few months?

Hello David. I think that I will just maintain my position in cpne.ob. It was tempting  to sell but I decided just to hang on and make the big profit later on. I am not going to watch the stock today I think I will go for a walk instead. 

  I found it. From David's Analysis



Let's consider monthly growth in November was also 50% from the prior month, October. I get 17,993 new subscriptions in October, that means $898,725 in new revenues for that month.

Now let's consider a very high costumer churn of 50%, each month (I don't know if this is too high or not, it depends on the quality of the service).

October contributes with $898,725 + $449,362 + $224,681 = $1,572,768 for Q4.

November contributes with $1,797,475 + $898,737 = $2,696,212

And December gives $3,594,951 in new revenues.

Sum this up and get $7,863,931 in new revenues for Q4, 2006.

Of the $7,627,533 Q3 revenue, $6,036,364 came from subscriptions. The rest came from the company's other subsidiaries, that is, $1,591,169, which we will leave constant.

Assuming the same monthly churn of 50%, the $6,036,364 obtained in Q3, divided by the 3 months, are $2,012,121.

So, this gives me just $1,006,060 for October, $503,030 for November and $251,515 for December. That is a $1,760,605 revenue contribution for Q4.

Summing it all I get $11,215,705 for 4th quarter revenues. If they maintain the net profit margin of Q3, which was 40.83%, net income for the quarter will be $4,579,219, which translates into $0.0964 EPS.

  I love this web community!!! Great Coverage on CPNE.OB WEBBY67, and of course David. The key words that I heard were that the last 3 weeks of December were not counted. We ran some numbers in a past thread that was talking about CPNE new customer growth and how much they were contributing to the last few months of the year. If memory serves me correctly these were some significant numbers. I will go back and try to find the threads. Thanks.
tireslinger