Kerry, I read the interview now and it didn't clear anything up for me. I have no idea what this guy meant by cash earnings. I suspect it is something like Ebitda, which is nonsense. That was the same argument made for Pagenet in the 30s when I was shorting it. The simple fact is, interest, taxes, depreciation and amortization are real animals. Stuff wears out and becomes obsolete and has to be replaced. Last time I asked, the govt. was pretty danged fussy about paying those taxes. Yes, the banks sometimes let players slide by on interest payments for a while, but they usually prefer to get their pound of flesh. Then there is goodwill, which is often a big number in this business, and that can be either a real number or a phantom.
I hate this stock. I can't believe a radio station triples in value because these geeks come in, fire the disc jockeys and put Laura Slushburger on the air. -G- MB |
