Savvy Trades and Investments

[Swick984]

Wade - CUO - you do realize that your math here implies a 75% gross margin for the windmill project? I agree that margins are key for CUO and a valuation opinion will swing wildly depending on what you think are normal margins. If you look over the long-term (10-15 years) you'd see that the last few years were a period of low margins. I think they are starting to get back to a long-term average margin and would expect them to continue to be in the low 20% range. There is also $1.2 million of litigation expense rolling through on an annualized basis that is holding down profitability. I think $25-$30 is reasonable until they prove that they can keep these margins, after which, the $30's are certainly possible.