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  • Lifetime Brands: A Mundane Company, With Exciting Profit Potential [View article]
    That was our point in including JCPenney. Lifetime trades at multiples that are below those of JCPenney, despite the fact that the company is not distressed in any way, something that cannot be said for JCP. The inclusion of JCP is meant to illustrate that if JCP can command such multiples in its distressed state, then Lifetime should command higher multiples.
    Apr 17 09:33 AM | Likes Like |Link to Comment
  • Lifetime Brands: A Mundane Company, With Exciting Profit Potential [View article]
    Lifetime's trailing 12-month P/E ratio, adjusted for debt, is around 18x, not 25x
    Apr 16 11:46 AM | 1 Like Like |Link to Comment
  • Yahoo: As Alibaba Goes Public, Value Of Underlying Business Will Begin To Shine [View article]
    That is what continues to cause us to remain investors in Yahoo, even after its rally. At this point in time, its hard to argue Yahoo is growing at anywhere near the rate of Google, or other top-tier social/mobile/ad companies. But while Yahoo continues to generate a great deal of cash from its business, its being valued as if the company is burning cash running a worthless search engine and ad business. While Yahoo's business has certainly shrunk from historical levels, it remains very profitable, and sooner or later, we think that this will be realized by the market.
    Mar 31 10:53 PM | 2 Likes Like |Link to Comment
  • Yahoo: As Alibaba Goes Public, Value Of Underlying Business Will Begin To Shine [View article]
    Naturally, Alibaba's value to Yahoo carries some inherent uncertainty. Valuation is more an art than a science, and until Alibaba officially files it F-1 papers, we won't have a detailed look at its financials, which is what is really needed to get a more precise valuation of the company.
    Mar 31 10:50 PM | Likes Like |Link to Comment
  • Yahoo: As Alibaba Goes Public, Value Of Underlying Business Will Begin To Shine [View article]
    Yes, our calculation includes their long-term investments as well.
    Mar 31 10:48 PM | 1 Like Like |Link to Comment
  • Nexstar Broadcasting Group: In 2014, Its Star Will Continue To Shine [View article]
    At a high level, NXST generates sale/profits from a couple sources: first, from the stations it owns outright in various markets, from which it generates advertising sales and retransmission fees. In addition to that, NXST also generates revenue from its digital properties, and from its JSA/SSA agreements. Possible confusion over retransmission fees may stem from the fact that within the TV industry, there are several layers of such fees. NXST's fees are generated by being paid by cable operators for retransmitting its own signals.

    The FCC is arguing that JSA's and SSA's essentially violate the spirit of its ownership restrictions, and as such, the agency has tried to rectify that. However, the authority to do so needs to be reauthorized by Congress, and like essentially every issue, it has devolved along partisan lines.
    Mar 21 04:46 PM | Likes Like |Link to Comment
  • Kate Spade & Company: The Crown Jewel Begins To Shine, For Investors And Bidders [View article]
    That's certainly a possibility, but Michael Kors has not demonstrated a proclivity towards M&A, and given the company's fundamental performance (to say nothing of its stock price), management may not see a need to shore up performance via M&A. If Coach makes an offer, perhaps that might drive Michael Kors management to step in with a counter-offer, but until that point, we believe that Michael Kors is lower in the ranking of potential suitors than companies like Coach, LVMH, and VF Corp.
    Mar 5 01:22 PM | Likes Like |Link to Comment
  • Kate Spade & Company: The Crown Jewel Begins To Shine, For Investors And Bidders [View article]
    The ticker has been changed to KATE, still trading on the NYSE. Our PEG info was calculated with each company's EPS CAGR and fiscal 2014 P/E multiple.
    Mar 5 01:18 PM | Likes Like |Link to Comment
  • Sonus Networks: Connecting Shareholders To Double-Digit Returns In 2014 [View article]
    The part about its undervaluation relative to peers was added by the editorial team. If looking just as Sonus' multiples, it does trade at a premium to its peers. But, when taking into account the difference in growth between Sonus and its competitors, the company trades at a discount, and that is what the editorial team added the part about relative undervaluation.
    Mar 5 01:16 PM | 1 Like Like |Link to Comment
  • SoftBank: For Exposure To Alibaba, Look To Tokyo, Not Sunnyvale [View article]
    Regarding SoftBank's debt, our valuation already takes it into account as part of the company's net non-investment assets. At the end of 2013, SoftBank had ¥9.220097 trillion in debt, against just under ¥2 trillion in equity (attributable to owners of the parent). It's important to remember that a sizable portion of that debt reflects the assumed debt of Sprint (and through it Clearwire), and that this is the exact same strategy SoftBank pursued with Vodafone Japan, where the company levered up to buy it, and then proceeded to quickly deleverage itself.
    Mar 2 02:01 PM | Likes Like |Link to Comment
  • Sonus Networks: Connecting Shareholders To Double-Digit Returns In 2014 [View article]
    The company you're referring to is Sonos (privately held) not Sonus Networks.
    Feb 26 02:02 PM | Likes Like |Link to Comment
  • Air Canada: Finding Value With Our Friends To The North [View article]
    With regards to the Canadian economy, the current forecast from the Bank of Canada calls for 2.3% GDP growth in 2014 (http://bit.ly/1dRyooM), ahead of their final estimates for 1.6% growth for 2013. We don't believe that selecting a few routes is a truly appropriate measure of measuring load factors (but it could be somewhat useful, depending on the routes selected), for each route has its own underlying economics that help determine load factors. Furthermore, the dates selected are also of great importance.
    Feb 20 09:42 AM | Likes Like |Link to Comment
  • Air Canada: Finding Value With Our Friends To The North [View article]
    4-Traders itself has data fed to it via Reuters, but occasionally the figures differ slightly from what Reuters itself is forecasting. It would be simpler if Reuters released 2016 estimates on its own website, but unfortunately that isn't the case. Within the peer comparison table, the net cash "issue" is a function of how Excel treats the Canadian dollar vs. the US dollar; for some reason, it does not allow for the addition of parentheses to the figure, and in the process of uploading the table into the article, the red font used to distinguish the net debt was lost. However, the net debt is carried throughout the lower portions of the table. As for our projected P/E multiples, that was outlined in the peer comparison & valuation section by taking the peer average P/E multiples for that year and applying the relevant premium.
    Feb 20 09:37 AM | Likes Like |Link to Comment
  • SoftBank: For Exposure To Alibaba, Look To Tokyo, Not Sunnyvale [View article]
    Conglomerate discount are most typically applied to companies that have significant differences in their actual operating divisions; Vivendi is a primary example. SoftBank may have a diverse set of assets, but these are primarily financial in nature, such as its stake in Yahoo Japan or Alibaba, or they are synergistic, such as its majority stake in Sprint and its own core mobile operations.
    Feb 17 05:43 PM | Likes Like |Link to Comment
  • SoftBank: For Exposure To Alibaba, Look To Tokyo, Not Sunnyvale [View article]
    Schwab's analysis is likely one that is computer-generated, and we never place much emphasis on the output of such analysis, for it is very difficult for it to capture the unique nature of the companies in question. As for liquidity, average volume is around 300,000 shares daily for SFTBY, which can be worked with, so long as limit orders are used. As for why the stock trades OTC, that is a question for SoftBank's management. Many prominent foreign companies, such as BMW, Burberry, or Credit Agricole all trade OTC, as opposed to the NYSE or NASDAQ, and the decision to do so is one that is made by each company's own management team.
    Feb 17 05:40 PM | 2 Likes Like |Link to Comment
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