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

To: Tomato who wrote (17389)	7/10/2003 6:30:09 PM
From: MCsweet	Respond to of 78507

Tomato, You ask a good question regarding KDUS. I'd don't have a good answer. I know that in some industries there are standard EBIDTA multiples for acquisitions, but given I don't what industry they'd enter, I am not sure where to start. I do know of one instance where a cash-rich company has acquired another profitable company --- Softnet (SOFN), which is now American Insurance (AMIC). The results have been good so far, even though I was skeptical of the whole thing. As for KDUS, we have new management run by one of Carl Icahn's protege. Given Carl Icahn's track record, I assume that management will be investment savvy, but not necessarily looking out for the shareholders' best interests. Similar to Paul, I personally would be happy with liquidation right now. I prefer an immediate, riskless 30-40% gain to a possible higher gain that is somewhat risky and may take years. However, either way I think it is a reasonable place to park some cash. MC