Thermal Control Technologies Corp TCT (was Redux Energy) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Thermal Control Technologies Corp TCT (was Redux Energy)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: ASHLEY5 who wrote (372)	4/21/1998 12:54:00 PM
From: Saverio	Read Replies (1) of 1208

<<I am still wondering if the interest on the debentures $560,000 per year is going to really hurt there EPS over the next couple of years???>> It's a tough call; intuitively, it depends how fast they will be able to increase sales in order to use their new capacity. As their gross margin is roughly 50%, and if we take the 3rd qtr gross margin level as as a base, the annualized gross margin (product revenue - cost of product) would be about $4.3 million. It would take about a 13% sales increase to pay for the interest in the first year. I would think that should not be too difficult to reach. I am welcoming any challenge to the above "back of the envelope" speculation. Cheers. Saverio

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next