Current Downturn???

christian11 at mindspring.com christian11 at mindspring.com
Thu Mar 22 09:01:02 PST 2001


lbo-talk at lists.panix.com wrote:
>
--- Jordan Hayes wrote:
>
> A simple answer is that you keep paying for them (in current
> reductions of profit) via depreciation but you don't generate
> revenue to match.


>Not sure that this works in the glorious new world of EBITDA.
Depreciation is a non-cash item -- that's part of how these companies sustained their huge valuations in the first place.
>

Does not compute. Could you explain?

Christian



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