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  • Getting Long BBBY @ $63.80

    BBBY missed earnings after the close last night. Stock is down 6% this morning. Comparable sales are stable to positive and the net sales decrease is distorted by the 53rd week in the comparable prior year's quarter.

    With a generous Adjusted Free Cashflow Yield (EV based) of 9.1%, and an aggressive buyback programme set to continue over the next 12 months, which should equate to 9% of the current share count, the stock should outperform the market.

    Going forward the stock should be able to generate 5.7% earnings growth from reinvested earnings and 5.1% earnings growth from buybacks net of stock compensation dilutions. There is a certain cyclicality to this business and therefore slightly weakening EBITDA margins trends due to aggressive promotional tactics shouldn't necessarily be a longer term reason not to hold this stock. We don't believe that a 23% discount to the market is justified. We are therefore going long the stock v. a market short.

    Disclosure: I am long BBBY.

    Tags: BBBY
    Apr 10 10:21 AM | Link | Comment!
  • Closing SYMC Trade Having Rallied 13.4% In A Month.

    Closing SYMC Trade Having Rallied 13.4% In A Month.

    Tags: SYMC
    Apr 10 9:40 AM | Link | Comment!
  • Went Long CTCM Yesterday

    Went Long CTC Media Inc yesterday @ $9.5980. P/E 8.9x. EV/EBITDA 7.25x, Div Yield 6.51%, (Operating Cashflow - Capex) / EV 13.7%. Surplus cash being returned to shareholders via buybacks and dividends.

    Certainly the cheapest media play in the market. Depressed valuation due to unfavourable growth rates and pessimism surrounding recent tensions in Russia.

    Whilst its emerging market exposure carries a degree of risk, the stock seem cheap on an outright basis and relative to the market and the sector.

    Limited liquidity prohibits access for larger investors.

    Disclosure: I am long CTCM.

    Tags: CTCM
    Apr 10 9:37 AM | Link | Comment!
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