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Strategies & Market Trends : Low Price/Cash Ratio Value Stocks -- Ignore unavailable to you. Want to Upgrade?

To: stock leader who wrote (770)	5/23/2003 6:43:53 AM
From: David	Respond to of 1931

Stockleader: EBSC is an interesting arbitrage senario. EBSC is target of a bidding war. I've held the stock four years now and recently purchased more shares at $4.50 per share after announcement of interest from purchasers. The company announced that it received several solicitations and entered into a letter agreement to discuss possible sale with one of the interested parties. The company currently sells at 58% of net current assets and 28% of net tangible assets. The company throws off ebitda of around $20 to $30 million per year. Net current assets are $8.54 per share and stock trades at around $5.00. (net tangible assets are $18 per share) An Ohio investment group also proclaimed its interest in purchasing the company at a premium to EBSC's trading price which at the time of the May 21, 2003 announcement was $4.40 per share. They requested the company keep open the bidding process. EBITA was $32,372,000 or $2.80 per share for 2003; $32,232,000 or $2.79 per share for 2002 and $22,479,000 or $1.95 per share for 2001. Seems that the company would sell for greater than its current trading price if it were sold, at least that would be my hope.