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

To: bankbuyer who wrote (1597)	6/6/2012 10:39:41 PM
From: Covenant	1 Recommendation Read Replies (1) \| Respond to of 1876

EBITDA measures how able a company is to pay its debts. It is simply a metric for debt coverage. Knowing debt coverage in any Frederick company is important as he likes to use a lot of debt and pay high dividends. In the 1990s, some slick talking bankers and CFOs started to use EBITDA as the headline number because earnings looked like crap. That is the function of EBITDA in valuation: an imposter number masquerading for earnings. Since the slick talkers use it and those who were duped by those slick talkers have grown to expect to see EBITDA, many others use EBITDA also. Focus on the earnings and future prospects of same. NATDF is a single digit PE. Offshore drilling is a growing industry with tight supply and the company has a good backlog.