Hi Chief Wigam,I thought I touched on the Goldman sachs JB were...

Hi Chief Wigam,

I thought I touched on the Goldman sachs JB were report in my earlier post. You even replied on that post.

Anyway, have a look at their forecast EBITDA numbers for FY'10. They expect it to be $400mil, whereas TPI is coming in at approx. $450mil for FY'09. As I've mentioned too, if you believe that EBITDA is going to be less than $400mil in FY'10, then stay away. It really just boils down to that.

Apart from that, have a look at JB were's valuation. The $0.77 reflects a huge discount to their valuation. (If I remember correctly, it was something like a 50% discount ...... I don't have the report in front of me).

Lastly, have a look at JB Were's sensitivity table. Can you tell me how much they will have to upgrade their numbers if EBITDA comes in flat at $450mil with an interest rate of 8.5%?

Sometimes you need to read between the lines. As for Austock, I have not had a chance to read through their research, so I cannot comment. It seems that there is no love lost between the Were's analyst and TPI management (rightly or wrongly so).

Hope that answers your questions.

I do have a query though. You state that you don't have shares in TPI, but how come you are so heavily involved in reading every bit of research on TPI? ;) Are you looking to buy?

Happy Investing.