Bankruptcy Predictor Model 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.

Strategies & Market Trends : Bankruptcy Predictor Model

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Razorbak who wrote (142)	3/23/1999 6:30:00 PM
From: Q.	Read Replies (2) of 477

One reason that LWN has such a low Z score is they have a lot of assets. That means big numbers in the denominator when computing Z. They are in the process of trying to sell assets. If they are successful in doing that, then the numerators will go up and the denominator will go down, so that the Z score will go way up. Isn't that what would normally happen in a turnaround? The shareholders equity, which is computed using the book value of the assets, is a very substantial number, suggesting that shareholders would fetch $17 a share in a liquidation. Unless of course the assets aren't worth what the co. says they are worth. Anyway, the co. might go bankrupt if they can't sell assets fast enough, but even if they do go BK, the assets are there. 10Q can be found here: edgar-online.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next