WorldSpace, Inc. (WRSPQ.PK)

Radio is neither profitable enough nor in demand enough to justify the expenses that go with satellite radio. I can't really see how the domestic or foreign ones are going to make it, without broadening their missions.

It's XM and Sirius for the rest of the world, but worse. I find it impressive that a 100M cap has figured out how to borrow 2B, but with their average annual losses of 260M a year for the last 5 years helps understand why they'd need it.

$300MM in the bank but $2B in debt.

Meh, its going down the hill down to the earth's core

Really BAD, in the traditional sense.

This Company doesn't make any money. The bottom line sports a net loss of $128 million. And the losses keep getting bigger. Net tangible assets are close to negative $2 billion. Cash flows out of the Company so fast it makes me wonder if the employees are taking smoking breaks to light up hundred dollar bills. Can't believe anyone would invest in a Company in such a weak financial position.

Worldspace should be bankrupt, plain and simple. This was one of the worst idea IPOs Id seen in a while and the market is just NOW beginning to price that fully in. WRSP has lost considerable amounts of cash in the last two years and is now sporting a a price to sales of 11 and a negative $42 a share price to book..yeah you heard me right. They have enough cash to get through another eight months of business by my calculations. Someone get the black curtain, she's a goner.

Nero

Sagetrade

Just like all other satellite radio stocks....going down the tubes. Great idea......go into the 3rd world markets and try and sell a $15 a month subscription to listen to music. That really works well when people don't make $15 a week working and they can barely put food on their tables.

How can this co be valued at $200 mil. Sell now avoid the rush

Found WRSP by scanning through TMFBreakerDave's pick list after he replied to my blog.

Worldspace, Inc.(WRSP) is a satellite radio and data broadcast company with operations in the United States, France, Kenya, South Africa, Singapore, China, and India. Book value is -$42 per share, market cap is just under $200 million and they have about $140 million of cash and $155 million of debt as of 31 Mar 2007. TTM operating cash flow is -104 million.

WRSP has seen good revenue growth and is predicted to continue growing revenue. The problem is cost-of-revenue has been growing at least as fast as revenue. And with negative gross margins, that means the faster WRSP grows their business, the more money they lose.

This cash burning machine is estimated to lose $3.9 a share this year and $4.65 next year. If the estimates turn out to be correct, WRSP will have used up all their cash about the end of '08 and will need to either borrow more money, issue more shares or go under. So, they've got about a year to fix the business model and demonstrate some progress on the path to profitability.

The financials to date indicate they're very successful at burning cash, not so good at making it.

I think Satellite Radio is doomed in general, but one thing's for sure, this company is a bigger stinker than the competition.

Is that really an operating margin of -1148.15%

Seems it would take something major to turn this one around.

Marketplace for this just isn't strong enough yet for the capital they are burning up. Will run out of cash long before the market catches up to it.

Why on earth did this stock shoot up on no news? This stock should continue to burn cash as well as its stock price. Definite underperformer to the S&P.

Cash burn, targeting growing but relatively poor economies. They have great vision but their timing and finances are lacking.

Terrible fundamentals.

I'm beginning to think the satellite radio industry is equally as profitable as the airline industry.

Not enough subscribers EVER.
This stock belongs in the dumpster.

ride the index back up