Paul - They have $6.7B in debt. I don;t know how much they are paying on the debt. if the business is shrinking, then you have to be careful. Whats the FCFE?
Also, in these situations, where business takes a beating, a turnaround usually might lead to prepackaged chap 11, in which case, shareholders get totally screwed....I am not saying SVU will, but......better to keep an eye out.
Also from yahoo finance, ttm EPS is 0.13. I don;t know, given the marco situation and shrinking business, how they will get to $1.25 by 2012
So you might wanna follow this one very closely if you have skin in the game. If the matrix deteriorate too much, you are better off taking some losses |
