OTCPK:SWSH - Post by User
Post by
JoeBaggson May 02, 2011 11:17pm
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Post# 18520798
Mad Money - Jim Cramer update
Mad Money - Jim Cramer updateJim Cramer reviewed Swisher on Mad Money this evening.
His basic assessment was that he would watch Swisher in the short term, but would not invest as it is very speculative. He noted that SWSH trades at 20X earnings (which he thought was way too expensive), but noted that the company had an excellent pedigree. He concluded by reiterating that the stock was too expensive for him to justify the risk at this time.
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I can see where Mr. Cramer is coming from; however, I believe that if you have followed the company for some time, and you are impressed by the frequency and strength of the numerous mergers and tuck-in acquisitions, it is easy to understand why investors who understand the story are optimistic. Also, with each acquisition, the multiple which Cramer refers to is dropping. For example, at the time of the cool-brans merger the SWI was trading at a mutiple of 4300X ,after the larger acquisitions like those announced today the multiple is around 20X. Comparatively, the share price has roughly doubled.
Cheers