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Steven Reiman

 
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  • Short Spectrum Brands Holdings Or Use It In A Pair Trade [View article]
    Paulo,

    The debt does not "need" to be paid back ever as long as the business can operate profitably after paying debt servicing costs and can continue to do so in the future. Why can't they just continue refinancing the debt with new debt?

    Steve
    Aug 5 12:54 PM | Likes Like |Link to Comment
  • Short Spectrum Brands Holdings Or Use It In A Pair Trade [View article]
    Paulo,

    Why would you show FCF as a multiple of enterprise value? You are essentially double counting the debt as the FCF number already includes the interest expense of the debt. If SPB can profitably operate with it's current leverage ratio, I don't think it makes sense to look at the FCF multiple on a EV basis since you can assume that the debt can be rolled into perpetuity, meaning the only impact on the business would be the interest payments.

    Steve
    Aug 4 10:15 PM | Likes Like |Link to Comment
  • August Focus [View instapost]
    OSHC is great...growing deposit base, over reserved, low NPA rate...hard to lose with them in a steepening yield curve environment.
    Aug 3 04:15 PM | 1 Like Like |Link to Comment
  • Rangeley Capital's Maine Office From 1,000 Feet [View instapost]
    I've been snowmobiling up there, they get quite a bit of snow come winter.
    Jul 31 09:30 PM | 1 Like Like |Link to Comment
  • An Objective Look At The Performance Of Seeking Alpha's Alpha-Rich Articles [View article]
    Kevin,

    Thanks for putting in all of this work - will you be updating this in the future?
    Jul 28 04:12 PM | 4 Likes Like |Link to Comment
  • CWC Well Services: Wait Out The Keystone Pipeline With An 8.6% Dividend [View article]
    Rob Ks,

    You can find the dividend if you look under CWC.V (the Vancouver exchange ticker) or look directly on the company's website under the Investor Relations section.

    Steve
    Jul 24 07:55 PM | Likes Like |Link to Comment
  • CWC Well Services: Wait Out The Keystone Pipeline With An 8.6% Dividend [View article]
    Bnymon,

    Good question, I am including the rigs being bought and put into service this year.

    Steve
    Jul 24 07:54 PM | Likes Like |Link to Comment
  • ADDvantage Technologies: Deep Value, Smart Management, Upcoming Catalyst [View article]
    Nick,

    Thanks for the reply, my comments are below (just playing devil's advocate, I don't necessarily disagree with your thesis):

    Chymiak brothers: Why have we deemed them to have an excellent track record? Haven't they been there since the beginning (or at least for the past decade)? It looks like Ken has run the place since 1999. Isn't he at least partially responsible for the poor stock performance and large decline in sales?

    FCF Yield: In my opinion, this is only really relevant if the business has stabilized. However, it seems like this is a melting ice cube where unless a major acquisition or R&D program happens, FCF should start to decline. So while the FCF % might be 20% this year, it might be 15% next year, 10% the following year and so on. If this is the case, you need to deduct the capex required to stabilize revenue.

    Also it looks like in 2012, and for the first half of 2013, a good chunk of the FCF has come from decreasing inventory levels and adding back obsolesce reserves. I wouldn't think this would be sustainable in the future unless the company truly is in runoff modest and FCF becomes somewhat irrelevant.

    Trading up to Book Value: It seems like the decision isn't new acquisition vs. buyback shares but rather new acquisition or liquidate since I would think in this arena, if you aren't going to reinvest in new technologies your sales are going to dry up very quickly. In this case, if I take a quick look at the balance sheet and take 20% haircuts to A/P & P&E, disregard tax credits and take a 50% haircut to inventory I come to $25M of book equity which is roughly where it is trading at present.

    50% inventory haircut might be too draconian but I'm not that familiar with the products. If I do a 20% haircut to the inventory I come up with $31M of book equity or 20% higher than current mkt cap. Would they only have to take a 20% hit to offload all that inventory? I'm not sure.

    Would be great to get your thoughts.
    Jul 23 08:52 PM | Likes Like |Link to Comment
  • CWC Well Services: Wait Out The Keystone Pipeline With An 8.6% Dividend [View article]
    Jonjung,

    $3M of the differential was caused by CWC having a tax refund in 2011 vs. a tax expense in 2012. The remainder can be explained by higher depreciation and lower margins due to lower utilization in the 2nd half of 2012 caused by the spike in the WCS spread. Hopefully, that spread has now stabilized as the supply bottlenecks have temporarily been addressed by rail and will be addressed over the longer term by new piping.

    It's worth noting that in the annual report letter, Mr. Au indicated that he expected 2013 to be as good or better than '12 based on the current environment. Since his letter, oil pricing has continued to rise which should hopefully bode well for the company's '13 performance.

    Steve
    Jul 23 08:19 PM | Likes Like |Link to Comment
  • CWC Well Services: Wait Out The Keystone Pipeline With An 8.6% Dividend [View article]
    If there is one thing we can be sure of, it is that Canada will not be the one to sink this thing. They are desperate to get it approved.
    Jul 23 06:20 PM | Likes Like |Link to Comment
  • CWC Well Services: Wait Out The Keystone Pipeline With An 8.6% Dividend [View article]
    sprstirl,

    I don't have a crystal ball but I'm assuming the Democrats will use the Keystone as a trade chip during the next round of tax reform. As I discussed in the article, the pipeline just makes too much strategic sense to be rejected.
    Jul 23 06:20 PM | Likes Like |Link to Comment
  • CWC Well Services: Wait Out The Keystone Pipeline With An 8.6% Dividend [View article]
    The fact that the stock sells for $0.70 should have little bearing on the future viability of the company. It could do a 10 for 1 reverse split and sell for $7/share. It would not mean the company is any better or worse off.

    Management's benevolence has nothing to do with it. If management does not act in a shareholder friendly manner, Brookfield will install someone that will.

    However, two sides do make a market.
    Jul 23 05:41 PM | Likes Like |Link to Comment
  • CWC Well Services: Wait Out The Keystone Pipeline With An 8.6% Dividend [View article]
    JTF3D,

    No need to apologize. I mentioned the stock trading on the Vancouver section in the liquidity section under "risks." Unfortunately, SA only allows US based stock tickers and shows everything else with their respective OTC ticker.
    Jul 23 05:08 PM | Likes Like |Link to Comment
  • CWC Well Services: Wait Out The Keystone Pipeline With An 8.6% Dividend [View article]
    Akaralph,

    If you read the announcement (below), you can see there stated intention to keep the dividend to $.065.

    http://bit.ly/1327gOI
    Jul 23 12:34 PM | Likes Like |Link to Comment
  • All Systems Go For InfuSystem MBO [View article]
    Has Morris successfully done this kind of thing in the past?
    Jul 23 12:28 PM | Likes Like |Link to Comment
COMMENTS STATS
348 Comments
146 Likes