tag:blogger.com,1999:blog-7294165939647321702.post3975496565928181841..comments2024-03-28T13:45:43.362-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: The Higher The EBITDA, The Lower The ProfitSaj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7294165939647321702.post-19047992121766800392011-07-26T14:27:40.372-04:002011-07-26T14:27:40.372-04:00Hi James,
There are some smart guys on the board,...Hi James,<br /><br />There are some smart guys on the board, so they already know this. They must have had a reason for doing it this way...we are just not privy to what it is. Also, in my experience these small companies know what is being written about them, so they are likely already aware of this article.Saj Karsanhttps://www.blogger.com/profile/04493152766022812984noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-78967800379598732872011-07-26T11:57:48.164-04:002011-07-26T11:57:48.164-04:00You're completely right. Management with this ...You're completely right. Management with this kind of structure can increase their compensation just by changing the form of the company's capitalization. It gives them little incentive to actually improve the business. It would be better, I think, to include a clause that states that leverage must stay below a certain level for the compensation to be applicable.<br /><br />Maybe you should point this out to the company's management?James Huddlestonnoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-54804379834403866432011-07-25T09:39:02.516-04:002011-07-25T09:39:02.516-04:00Interesting you mention capex. According to their ...Interesting you mention capex. According to their most recent 10-q, MEAD may actually have to start making more capital expenditures in the future. Management made note of the old age and fully depreciated nature of the company's equipment in the report.Taylornoreply@blogger.com