InvestorsHub Logo

Anvil

11/17/09 5:07 PM

#48272 RE: snortgoesthebull #48267

This flipper is flippin po'd. This share price sucks. The stuff that is posted is crazy. Actually GEO touched on some good issues but let me expand:

1. Who has shares that they can sell down here? Gee, the O/S has been ramping up each week. Many here keep posting, converts or shorting, missing the forest through the trees.

2. Now let's talk financing. If QASP gets $350MM in debt, I think everyone would agree, it would be highly leveraged. So what the interest expense? $25-$35MM/yr. Some people even try to subtract principle payment out of income to get an eps. Wrong.

But here's the kicker, do some due dili, even private equity groups can't leverage EBITDA more that 5 times, which is really high and in fact, most deals are at 3-3.5 times. So at 5x, and $350MM of debt, cash flow would have to be $70MM.

3. Now as for collateral, lenders would not take free trading stock, they take an interest in the whole company, dean's pref and all the collateral. And lenders would only fund a certain amount at the time of each acquisition closing. They aren't going to give the company $350 and let them close the deals after the fact.

4. More disturbing is all these QASP corp's being set up. Makes me think we are going to be buying Dean's personal business.

Hey, but what do I know, I tried and flip here, not trusting management and am stuck until something positive happens.