Yesterday my colleague Gary Newman argued HERE that at 66p shares in blinkx (BLNX) were a buy. I respect Gary but disagree with him, this company is not worth £264 million. The shares remain a sell.
I start on the fundamental basis that Ben Edelman accused blinkx of engaging in illegal activities. blinkx blustered and used lawyers to bully. But it has failed to deal with Edelman’s core allegations and has not actually instigated legal proceedings against him. Watch the Edelman UK Investor Show video HERE and see what you think.
Now if Edelman is correct you really have to question the quality of earnings and earnings visibility here – as such I’d put blinkx on a very lousy PE.
blinkx does at least have $126 million cash
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