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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: rjm2 who wrote (13108)	9/23/2001 11:16:33 PM
From: peter michaelson	Respond to of 78520

OK, you may choose to use EBITDA and I may continue to think it is not the way to value this business. That's what makes a market.

To: rjm2 who wrote (13108)	9/24/2001 6:21:53 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 78520

Peter: Good to see you back. Good point on DA. I use EV/EBITDA because it's better than PE [figures debt], is commonly used as a buyout measure, and the EBITDA is right on the yahoo profile, so it's quick & convenient. That said, EBITDA has many shortcomings and you've correctly focused on an important one in this biz, IMO. Restaurants that aren't remodeled on a fairly regular basis tend to get stale. If the restaurant leases facilities then the depreciation probably nails or even understates this regular expense. OTOH, if the restaurant owns the building, in a decent location, then depreciation is somewhat offset by property appreciation [sort of analagous to FFO with REITS].

To: rjm2 who wrote (13108)	11/2/2001 1:00:56 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78520

restaurant stocks: MAIN. Nice move continues from 9/11. Sorry I did not buy anywhere along the way. I looked at SWRG again, and I still liked it. Bought a little recently. Financials look attractive to me compared to other restaurant stocks. They are white-table cloth guys, so there is that big risk that the high-end business will take forever to recover. I'll try to see if the SWRG CEO, who also started T.G.I. Friday's, will be as dedicated now and find some luck again with his SWRG venture. fwiw: Grommit, et. al., regarding APPB, discussed here several times: I'll take a little off the table today at current price. finance.yahoo.com