STATE OF THE INDUSTRY - Far from Dead

While we believe they will resume buying companies during the next 12-18 months, we also believe that as the sales initiatives are activated at the plant level, they will yield double-digit internal growth. The new internal growth coupled with renewed external growth should result in sales and earnings growth north of 25 percent. As they move into Phase II and 25 percent growth, their P/E multiples should move more toward 8.8 to 16.1.