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Strategies & Market Trends : Bankruptcy Predictor Model

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To: Larry Brubaker who wrote (334)4/16/1999 5:02:00 PM
From: Razorbak  Read Replies (2) of 477
 
TLM - Comments

Larry: I just ran the numbers on Talisman. Needless to say, they look bloody...

12/31/97, Z = 1.55
12/31/98, Z = 0.68

I don't have enough time to post the details now... nice, 3-day weekend ahead... but I'll do so after I return. AFAIK, the pipeline has been completed, but it is still dry, albeit ahead of the original production schedule. Technically, the stock has recently broken out and appears headed back up towards the 52-week high. Despite the low Z-score, operational cash flow was very positive last year, and rising prices are no doubt driving the recent recovery. The biggest negative IMO is the large working capital deficit (C$304.5 million).

Razor
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