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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: Patentlawmeister who wrote (3351)	5/11/2003 9:55:10 PM
From: Crossy	Respond to of 37387

Cuda, IMHO, the $140 will NOT be the ultimate takeout price. My calc has is at $250-300m value, but what the heck, you need an acquiror to actually pay that amount before you can realize this kind of valuation. Last year gross profit was $40m and that was a below average year. EBTIDA would be around $20m, maybe even more. Liabilities subject to compromise is $140m but there will be $20m in cash and $20m from Q1 EBTIDA. Tangible book value will be around $100m+$20m or $80m. If $140m are true then it would mean $60m for the shareholders or $5-6 per common, assuming no cumulative interest payments for the year in Chapter 11 will be made ex-post. But anyway, the $140m is rather low and the NYPost article sort of indirectly mentioned that there might be a bidding war going on. Apart from this there is a BOD-membership overlap between Kellwood and KAsper.. best rgrds Crossy