Brian Powers

Bet on Buying Boyd

Although your analysis appears extensive, it is simply a filling in of text book blanks with outdated information. True investing analysis would never have missed the fact that BYD delayed the Echelon project months ago. The fact that you highlight the property as a near term positive is quite inaccurate.

When BYD begins expensing Echelon costs next year instead of capitalizing them, its profitability and financial ratios will be affected making your models obsolete. Also, there is some risk over the next year that BYD's metrics will violate its covenants.

I am long BYD, but I understand the risks to my satisfaction. I hope your readers understand they should be doing their own research before making any investing decisions.

This may be a nice college project, but it does not contain real world diligence.