|Waste Services (WSII) |
Although the debt load at Waste Services is large, so are the cash flows. With $67 million in EBITDA (earnings before interest, taxes, depreciation and amortization), the company trades at just 10 times cash flows. I wouldn't be surprised to see Prides or Westbury attempt a leveraged buyout over the next year, something that would crush the short-sellers. Prides even states on its Web site: "We look for companies of high quality which we can purchase below their intrinsic values, and with which we can create an active partnership with management to add and create value."