Replies to post #38419 on Savvy Trades and Investments

[hweb2]

Gotcha on EVI. A 30X EBITA valuation for a dry cleaning company seems kinda ridiculous to me, but guess that's what makes a market. I had the CYBE longs on Yahoo telling me it was still way undervalued at $40. Now it's in the $14's. When the comps get difficult, I still say EVI sells off hard. Might take a couple more quarters tho.

[Swick984]

EVI - I'll be looking to short this as well. Any hedge fund manager that thinks a dry cleaning company deserves a 30x EBITDA valuation won't be a hedge fund manager for long... Even Pool Corp, which is 50x bigger!, trades for half that, at a 15x EBITDA multiple...

Not sure how many business sellers they'll be able to fool into taking stock, if they're selling their biz at 8x and getting something valued at 30x instead...

Time will tell, but I'll be betting on a drop.