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Ranjit Thomas, CFA

 
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  • Cramer's Late to Titan's Party; I Prefer Agco [View article]
    Take this year's EPS for TITN, put a generous 25x multiple, and you get a $22 stock - substantially below where it's trading. Also note that the company is not generating any free cash flow.
    Jun 18, 2008. 10:49 PM | Likes Like |Link to Comment
  • Marvell: Are Acquisition Rumors True? [View article]
    Just one of those rumors thrown around to pump up a stock already at an inflated value. MRVL is trading at 30x GAAP EPS - why would anyone pay a premium to buy it?
    Jun 16, 2008. 08:18 AM | Likes Like |Link to Comment
  • Casino Stocks Actionable Call Alert [View article]
    Well, maybe you should look at the valuation these stocks are trading at? Even after the recent fall, they look hugely overvalued.
    Jun 13, 2008. 03:30 PM | Likes Like |Link to Comment
  • Terra Industries: Fertile Company in a Fertile Sector [View article]
    I agree. At 10x earnings, the stock is great value at this level.
    Jun 13, 2008. 10:06 AM | Likes Like |Link to Comment
  • Juniper Looks at Least 20% Overvalued [View article]
    Follow the cash, my friend. Have a look at their cash flow statement and see the amount of cash they throw up - substantially more than their net income.
    Jun 12, 2008. 08:27 AM | Likes Like |Link to Comment
  • As Coal Skyrockets, Analysts Are Late to the Party [View article]
    I agree. It probably means the stocks have topped now that analysts are upgrading them! Let's not forget that none of these coal companies is actually making any money. They are all trading on optimism that they will make gobs of profits in future years as more of their production is sold at spot prices. However, that also means there's going to be a lot more supply in the spot market, so I wouldn't depend on spot prices holding up.
    Jun 3, 2008. 10:42 PM | Likes Like |Link to Comment
  • Research In Motion Should Be Selling Off on Latest Goldman Call [View article]
    Wouldn't it be a good idea to provide some analysis to support your conclusion?
    Jun 3, 2008. 09:01 AM | Likes Like |Link to Comment
  • Marvell’s Price Target Looks Achievable [View article]
    Well, as long as you look at non-GAAP EPS and ignore a humongous amount of stock comp, anything is possible. If you were to follow a fundamental investing point of view, you would come to realize that MRVL can barely do $0.50 of GAAP EPS a year. So, maybe a $10 stock price would be appropriate?
    Jun 1, 2008. 05:32 PM | Likes Like |Link to Comment
  • Clearwire: Burning Cash by the Billions [View article]
    Well written article.
    May 16, 2008. 08:03 AM | Likes Like |Link to Comment
  • Buy Opportunity in Gaming Stocks: Reduced Targets, Easier Comparables [View article]
    The article misses the point that the gaming stocks are at inflated valuations based on mis-informed opinions that profits are going to skyrocket in the future. Free cash flow is hugely negative at LVS and WYNN. In fact, LVS's operating income can't even cover its interest payments, and this is before the huge capex they have been incurring is yet to seep into depreciation. There is a real risk that they could go bankrupt.
    May 14, 2008. 10:20 AM | Likes Like |Link to Comment
  • LDK Solar Worth $23B? [View article]
    Well, you've got to discount free cash flow, not net income. And free cash flow is hugely negative right now. What it will be in the future is anyone's guess, but I suspect it will be significantly less than what you think it will be.
    May 13, 2008. 08:23 AM | Likes Like |Link to Comment
  • James River Coal: Emerging Long-Term Optimism [View article]
    The co. is generating losses and burning cash. By the time they get to profitability (if ever), they would have burned through a lot more cash, so the EV will be higher. Also, their costs are rising, and I don't think they will ever earn more than $1 per share. This stock should be at $12.
    May 8, 2008. 08:37 AM | Likes Like |Link to Comment
  • Retail Buys Can Be Found in This Market [View article]
    CTRN is at 20x EPS and their free cash flow has been consistently negative, which calls into question their reported profitability. I don't understand why anyone would buy this stock at the current level. I can't see it worth more than $12.
    May 5, 2008. 05:32 PM | Likes Like |Link to Comment
  • Building a Kulicke and Soffa Pyramid [View article]
    The company is not generating any cash. The pyramid seems to be one of losses.
    Apr 23, 2008. 04:36 PM | Likes Like |Link to Comment
  • Equinix: Global Connection Hub for the Internet [View article]
    This co. trades at 8x revenues, doesn't generate profits or cash and hands out copious amounts of stock to their executives. All measures to value it rely on non-fundamental factors like EBITDA, "maintenance" capex and pro-forma numbers. Incidentally, the concept of maintenance capex is a joke. Most of what they term expansion capex is really recurring capex to replace equipment. The shill game will continue for a while till they can no longer raise more debt. Then perhaps people will come around to valuing it on fundamental factors like earnings and free cash flow (both of which are negative), sending the company to bankruptcy.
    Apr 23, 2008. 04:19 PM | Likes Like |Link to Comment
COMMENTS STATS
78 Comments
42 Likes