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Conference call



August 07, 2008 – Comments (2)

CECE, Ceco Environmental, is a company that I find as being well run, expanding quickly and good for RL money. If you want to know more, go read mine and others pitches, visit the website etc.etc.

The reason I am posting is because of one detail that came from the CC that I thought you might find interesting. For their latest purchase of a business that expands them into new territory they turned to their bank for a loan. Their bank told them 16-20%. Seems like a pretty high percentage to me. The CEO lent the money himself at 10%. I guess if the bank gets money from a sovereign wealth fund at 10% they need to lend it out higher.

2 Comments – Post Your Own

#1) On August 08, 2008 at 2:26 AM, AnomaLee (28.87) wrote:


I think you will that to be more prevalent in this environment. Creditors are charging higher rates which is increasing the burdern on many smaller corporations like this one. At a quick glance I noticed that it would take three years of payments from their entire EBITDA to pay down their debt.

That was a very quick glance. Typically, I don't like taking recs for small cap stocks(less than 200 million) from anyone, but since it's in my area of coverage I can find out more.

It does look interesting.

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#2) On August 08, 2008 at 8:42 AM, devoish (65.42) wrote:


Thanks, any info you can find out will help. My point was to the percentage rate and the hurt that will put on expansion plans and any company that needs to refinance debt. I included the company name so anyone interested could judge for themselves whether or not this loan is a high risk, justifying such a high percentage rate.

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