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To: Wayners who wrote (13656)8/15/1998 11:13:00 PM
From: Glenn D. Rudolph  Respond to of 164684
 
Just and excerpt from Fortune:


Ebitda has gotten so out of hand that Martin
Fridson, Merrill Lynch's respected chief of
high-yield research, recently went against the
grain with a report headlined "Ebitda is not king."
While he says it can be useful--especially in
analyzing junk bonds--he believes that too many
analysts are using it as the starting- and
end-points of their analysis. Grouses Robert
Olstein, who manages the Olstein Financial Alert
fund: "Ebitda is like Alice in Fantasyland. It should
be outlawed from securities analysis."