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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Mike M who wrote (91599)	7/5/2002 12:16:32 PM
From: Zeev Hed	Respond to of 99280

They are not highly leveraged as far as their balance sheet is concerned (their debt is less than half their accounts receivable plus inventory, not a bad situation). The leverage is to volume of sales, they are breaking even at around $80 MM quarterly, if they go to $100 MM or more on a quarterly basis, a more normal sales rate for them, they have cut down on their expenses so much, that they can bring down to the bottom line a cool $16 MM or close to $4/share in gross profits, make it $2/share after taxes and reinflating their SG&A, and that is still quite a bargain for a stock that has traded between $2 and $4 here during these "hard times", and in my book a real bargain. I doubt that there is a question of survivability for this outfit. In the last year, they have done a great job (unrecognized by the market) in managing their balance sheet, they have cut their debt by more than $50 MM (close to $2/share), don't think you'll find many outfit performing such a feat during these high techs hard times. Zeev