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Gold/Mining/Energy : MYT - Mytec Technologies -- Ignore unavailable to you. Want to Upgrade?

To: JOHN RIXON who wrote (1070)	7/10/1998 3:05:00 PM
From: Investor 007	Read Replies (1) \| Respond to of 1535

Well thank you to the Good News Bears! I have a feeling that you and Glen Abbey will have thoroughly white-washed this thread by the time I return. By the way, you want to be sure the 60 multiple is for goodwill only (doubtful) and doesn't also include fixed assets (many trucks) and accounts receivable, etc. Quoted multiples of this magnitude are highly suspicious. I have an accounting background in the investment business, so I've seen this before. Just ask yourself, would you pay 5 times annual revenue for a company when customer attrition rates run close to 15% in the industry. By the end of your 7th year, you wouldn't have any customers left. In the meantime you would have only earned about 15% operating profit on your declining account base. You could never recover your investment. Impossible. Not a good deal by any stretch of the imagination. When it sounds too good to be true, trust me, it is.