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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: techtonicbull who wrote (48723)	5/1/2002 1:08:25 PM
From: Dave	Read Replies (2) \| Respond to of 64865

EBITDA means Earnings Before Bad Stuff. It's a magical number that companies like to use to hide the rate at which they are losing money. An analogy might help. If you have a lot of credit card debt, and your finances are spiraling out of control fast because the interest payments are mounting faster than you can pay them, then just ignore those credit card payments. And you ignore your income taxes too! And evaluate your car at the price you bought it, instead of factoring in rust and engine wear. Now you will feel a lot wealthier and the future will look bright. So you can go out and buy more stuff on your credit card. EBITDA is the corporate equivalent of that kind of wishful thinking. Dave