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Technology Stocks : HDCO - Why sudden dip? -- Ignore unavailable to you. Want to Upgrade?

To: Creditman who wrote (518)	11/13/1998 12:32:00 PM
From: rich evans	Read Replies (1) \| Respond to of 572

On the negative side for HDCO , their debt financing of 200 mill rquired them to pay 9.55% if memory serves me right. So with their line of credit debt of about 160,000 , they have a lot of debt at high interest totalling over 7.5 mill a quarter I think.I don't know at these interest figures whether the 218 mill they paid for CCIR is that accretive in 99 as Tim Losick originally said it would be before the financing. The pricing pressures have reduced margins most likely despite the leverage from their higher cap utiliztation. In 1997 CCir had good margins and the net margin was as I recall about 7.55, one of the highest but then in Q198 things went south with the problems at their innerlayer Pheonix facility. And the rest of 98 is well known history. Rich Rich