Deep Value Diver

Should Liberty Starz Trade at a Discount?

I don't really understand your question. Because OIBDA and Operating Income are operating/unleveraged metrics, they can ONLY be related to enterprise value not equity value.

I use the following assumptions in calculating the implied enterprise value of Starz Entertainment: i) 53.1 MM shares, ii) $608 MM cash, iii) $250 MM loan to LINTA, iv) $111 MM non-operating liability related to PSARs, and v) $43 MM - $54.9 MM of value for interest in WildBlue and PicksPal.


On Nov 17 10:36 PM SevenCostanza wrote:

> DVD -
>
> By what method did you determine the following?
>
> "At $47 per share, the market’s current valuation of Liberty Starz
> implies that Starz Entertainment is worth only 4.4x FY09 Adjusted
> OIBDA and 5.2x FY09 operating income."
>
> I arrive at similar numbers, but only as an EV/OIBDIA and EV/OI basis.
> Are you backing out cash and current assets as well?
>
> Take care
>
> Eric

U.S. Paper Industry: Miracle or Mirage?

While black liquor certainly saved KPPC, the future is what matters. Yes, the stock clearly looks pricey on historical results. As a non-integrated paper manufacturer, it is prone to significant fundamental volatility in financial results. However, a surface level analysis like this gives the impression that trailing results are normalized. I would argue that the stock is trading 15% below year-end tangible book value and has the ability to absolutely print money when a) pricing recovers, as it should with significant capacity rationalizations next year, and b) its normal mix returns. To me, asset value and a soon to be rock solid balance sheet seriously limit the downside, and many catalysts exist for a significant upward revaluation of the shares next year.

Clearwater Paper: An Undervalued Spin-Off

Thanks, fcharlie. I agree with everything you said.

Clearwater Paper: An Undervalued Spin-Off

They own the 880 acre site where their Lewiston, Idaho facilities are based. They don't own timberland acreage, if that's what you mean.

Population Growth Trends and Global Investing

Nut job.

A Strong Argument for Shorting RIM

You call that "a strong argument?" You're recommending shorting a growth stock because 1) you're a value investor, and 2) you don't like the technicals. That is an amazingly weak case to short any stock.