looks like a bargain to me, page-5

Hi chief Wigam,

Can you please quantify your sources of who the broker is and how he came up with the valuation? I'm really surprised that he/she came up with such a valuation. I believe there might be a possibility it was a misinterpretation?

For the life of me, at $1.20, I can't really see a P/E of 20x for FY'10 unless their revenues go pear shaped from here. I believe their EBITDA numbers can grow from the $450mil ish this FY.

Yes, I agree. The second half FY'09 numbers were lousy, however, I believe that was the low of the low for TPI. There is no rocket science to TPI now. You have a Private Equity firm looking for the first opportunity to wrestle management control and streamline the company. Added to that, if costs are under control, then TPI will grow with the economy.

I believe an EBITDA of $480mil to $500mil in FY'10 is within reason. We shall wait and see. On those numbers and accounting for the lesser interest bill, I cannot for the life of me see how it is trading at 20x FY'10 P/E.

Well, if the broker who knows the Peabody family has valued them at $1.09 with a P/E of 20x for FY'10, then I guess Peabody does not know the broker anymore?

Happy Investing.