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

To: Sergio H who wrote (13351)	11/23/2001 11:37:55 AM
From: Bob Rudd	Read Replies (1) \| Respond to of 78670

EV/EBITDA ~6.1, But cash is very low, AR, while improving for last 4 quarters is still nearly 20% above 6/30/00 quarter while sales have slid 15%. Meanwhile inventory has soared 63% since that quarter. Wildly out of line with sales. SG&A is up 25% since that quarter indicating lack of cost control. You can see where cash flow is going and given the lack of cash this is troubling. Microcaps typcially don't have easy access to credit markets. Bottom line: It deserves to sell at depressed valuations and will probably sell at even more depressed valuations in the near future...could easily go BK, in fact.