Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: victor pan who wrote (4715)	8/19/1998 9:36:00 PM
From: Stewart Whitman	Respond to of 78625

OFIS just went through a restructuring, conducting a self-tender for a large number of shares and selling part of the company to a leveraged buyout firm. OFIS took on a lot of debt to accomplish this. Pro forma results have not been reflected in earnings on Yahoo. And the balance sheet numbers have not been updated. After spending some time on the effects of the restructuring, I think its more realistic to expect earnings in the $.50 to $1.00 range next year. Their interest payments are going to be ~$80 million and last years EBITDA was about $175 million. That doesn't provide enough of a margin of safety for me. Of course, I say all this without have a seen a 10Q since the restructuring occurred. I've just looked at the pro forma information in OFIS's 8-K: edgar-online.com Stew