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Technology Stocks : NUTR - Nutraceuticals Inc -- Ignore unavailable to you. Want to Upgrade?

To: Joe who wrote (11)	5/2/1998 2:53:00 AM
From: Roman S.	Respond to of 41

Which figures are you using ? Looking at the current report, current liabilities almost cut in 1/2 and long term liabilities decreased by about 40% and stockholders equity tripled. See below and then please explain how you get 2:1 debt ratio. From what I see, now it is less than 1.0 if you add it up. (Current Liab+Long Term Liab) / (Current Assets+Prop,Plant,Equip) =0.87 if my math is correct for current ratio and 1.61 for the previous figures. ----------------------------------------------------------------- NUTRACEUTICAL INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (dollars in thousands) March 31, September 30, 1998 1997 ASSETS Current assets $39,412 $35,084 Property, plant, and equipment, net 10,776 10,711 Goodwill, net 41,397 42,008 Other assets, net 1,234 2,307 $92,819 $90,110 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $10,076 $19,468 Long-term liabilities 33,407 54,288 Stockholders' equity 49,336 16,354 $92,819 $90,110

To: Joe who wrote (11)	5/2/1998 12:46:00 PM
From: Rodney Glover	Respond to of 41

It went up because people researched and paid $17.5 or more for it. I probably would have paid that at the time myself, I like the industry and NUTR is a market leader, looking for acquisitions and growth opporturnities. That brings me to another point -debt- The current debt ratio is not 2:1, it is less than one by current figures. However it could reach 2:1 since the company is looking to buy. Not, a big factor, as long as they have the earnings to pay debt. Working capitol was 17.8 mil last qtr, they actually used less than 2 mil, good cash flow. For every ratio that seems "high", I have found 5 which are "better" than average. I hope you don't make decisions based on one factor such as PE, Current ratio, Price to Sales...look at the total picture. May drop next week, May not...I'm putting my money on the May not side this week. The only thing I'm worried about is that it looks too perfect, there must be something bad that I am missing, or maybe Friday was just my lucky day. Good Buy at 12, but you may not get the chance...