Pivotal Stock Market Earnings Season Approaches [View article]
FYI I read it. Thank you for the insight! And I agree it will be tough for the market to rise from here even on meeting expectations. Guess we'll see what happens soon enough. And if the worst case plays out then there shall be buying opportunities and I intend on making the most of it.
Paired Trades: Short Nalco Holding, Long Met-Pro [View article]
They seem to be paying about 4.6% of total liabilities in interest (google) and - according to your data - after dividends, their FCF is about 2.8% of total liabilities (rough estimate). So does that mean they must be funding the shortfall via working capital (cash & equivalents)? If so then with the credit conditions in this market that doesn't give them much of a chance to avoid bankruptcy as they only have about $61M left in cash. When this runs out it's game over unless they can raise more capital no? Seeing as they are losing a ton of money this seems to be a great short as you've mentioned. I'm new to this and would be happy to get your input. Thank you.
Paired Trades: Short Nalco Holding, Long Met-Pro [View article]
Correction: The dividend should not be compared to FCF as it's yield on the stock... but still 3.3% FCF to liabilities seems too low to cover even interest. Please clarify.
Paired Trades: Short Nalco Holding, Long Met-Pro [View article]
Very insightful thank you. Maybe I'm missing something but it seems that NLC's free cash flow is approx. 3.3% of it's liabilities. After paying the 1.2% in dividends how are they supposed to cover the likely more than 2.1% in interest? It would seem that NLC is not just in poor shape but is in dire straights.
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Thank you for reading.
Is Goodfellow a Good Value? [View article]
Is Goodfellow a Good Value? [View article]
Paired Trades: Short Nalco Holding, Long Met-Pro [View article]
Paired Trades: Short Nalco Holding, Long Met-Pro [View article]
Paired Trades: Short Nalco Holding, Long Met-Pro [View article]
Paired Trades: Short Nalco Holding, Long Met-Pro [View article]
Thanks in advance for the clarification.