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Technology Stocks : Southwall Technologies
SWTX 46.990.0%Jul 1 5:00 PM EST

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To: Wade who wrote (990)11/29/2000 4:58:27 PM
From: Mike Healy  Read Replies (1) of 1143
 
Run-rate EBITDA before "non-recurring" or "start-up" expenses is about $13mm based on Q3. Given a $4 stock price this suggests an Enterprise value to EBITDA of about 5x. This is attractive for a growth story *only if* they can hold the ship together long enough to pay down a bit of debt and ease their liquidity problems. A very big if -- so big that you have to wonder if all the blockier trades today (generally up-ticks) must know more than we do.

Maybe there is something to the M&A discussions after all.
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