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.

Gold/Mining/Energy : Yogen Fruz IT'S ALIVE, IT'S ALIVE -- Ignore unavailable to you. Want to Upgrade?

To: yogi bare who wrote (1258)	3/10/1999 1:10:00 PM
From: telecomguy	Respond to of 2453

Their revenue has fallen from a high of 85 million in 1995 to 64 million in 1998. It's a company in decline. Witness their recent dividend payout-- surely an admission by the mgmt that they don't know what to do with the cash! So, their revenue is declining, (although it has stopped going down the last few years), no profitability to speak of, no warchest to acquire new brand/company to revive their sales and maybe most importantly -- tired management group? What is amazing is that this company is trading at 46 times earnings with no growth potential whatsoever! Just goes to show earnings multiple quite often doesn't make sense for small cap companies. YF is probably knee-deep in negotiations with them right now as the decline in share price will probably force the Board of EPie to take YF deal -- the question is at what premium. This will be a real good acquisition for YF as they will get name brand, distribution & immediately work towards rationalizing capacity/admin duplication. I suspect that Epie has excess capacity if their plants were originally designed to support higher volume so YF can immediately add to the bottom line by shutting down excess capacity between the two organizations while simultaenously literally doubling their revenue without even realizing any synergies in finding new distribution for Epie products. This deal will be good for YF from what I can see. I just hope it can be done soon to get YF back on the high-growth mode.