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Gold/Mining/Energy : Yogen Fruz IT'S ALIVE, IT'S ALIVE

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To: AGORA who wrote (1288)3/16/1999 6:34:00 PM
From: telecomguy  Read Replies (1) of 2453
 
EPie price going down is good as far as I am concerned. It tremendously increases the likelyhood that the EPie board will do the deal and it is bound to cost less to YF if the market is pricing it low.

As far as why it's gone down, who cares unless there is something seriously wrong -- which I doubt otherwise the price would have tanked. YF wants product, shelf space, brand recognition, production facility and some employees. They are not buying Epie as a financial investment so as long as the EPie operation increases YF's total revenue substantially and is EBITDA positive, it will be an excellent move.

Like I keep saying, YF has to keep growing the top line right now and not try to maximize short term profits or short term cashflow. If they show ability to grow and strategically gain control of the world-wide Frozen Dessert market, capital will be easily attainable and in any case, they will be able to do future acquisitions with paper as opposed to cash.

In fact, if I have any criticism, YF may have been too conservative in 1998. Perhaps they should have worked harder to do some more acquisitions....but then hindsight is 20-20 of course.
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