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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (513)	11/25/2004 9:56:46 PM
From: richardred	Read Replies (1) \| Respond to of 7265

Big Lions fan since 1969, when I was a kid: They looked terrible. Back to just trying to play spoiler for the rest of the year. Maybe an early draft pick again. (sigh)

To: Glenn Petersen who wrote (513)	11/26/2004 9:54:49 AM
From: richardred	Respond to of 7265

This is a good ballpark gauge on Valuation for Devry Bear Stearns says outfits in the sector typically generate profit margins of about 20%, using earnings before interest, taxes, and depreciation as a benchmark (EBIDTA). Private equity firms have been paying at least 8 to 10 times annual EBITDA for such businesses. In Devry's case, if a formal bid is made . I think it will be higher. I would guess around 25-30 dollars. We already know there is interest in the company from an inquiry made. That already tells me something. A suitor wants to feel out a friendly deal. I agree with the one analyst that Apollo Group makes the most sense. I would find it very interesting if it was Microsoft. The risk of buying Devry stock now is that no bid will be made at this time. It would be up to the company that made the inquiry to go forward with a hostile bid. IMO- Also a good chance for a white knight if a hostile bid is made. Devry will be good to keep an eye on if things cool down, and no bid is made. The Moore company courted Wallace many years ago and was rebuffed, but finally ended up with it years later.