Lowell - equity story, but showing potential

All,

Please find our updated model on Lowell here.

Despite our reaction this morning, we remain long the 8.5% SSNs as the company is in fact showing first signs of improvement / potential. As per our update in June, we will review the position in November as at that point we should either witness the much touted, but mostly unexplained leverage improvement management is prophesying, or not. Given the size of the challenge, we are not inclined to linger for too long if the rate of improvement doesn’t pick up quickly.

Wolfgang