Think Intrinsic - Seeking Alpha 'Think Intrinsic' Tag RSS Syndication from SeekingAlpha.com SeekingAlpha.com http://seekingalpha.com/author/think-intrinsic Eye on Optionable http://seekingalpha.com/article/27019-eye-on-optionable?source=feed 27019

OPEX

OPEX makes use of Nymex's (NMX) ClearPort clearing platform, which has seen average daily volume increase an average of 130% over the last three years. The ClearPort growth and stunning growth at Optionable stems from the increased interest in trading energy derivatives.

]]> Wed, 14 Feb 2007 06:02:19 -0500 Think Intrinsic

OPEX

OPEX makes use of Nymex's (NMX) ClearPort clearing platform, which has seen average daily volume increase an average of 130% over the last three years. The ClearPort growth and stunning growth at Optionable stems from the increased interest in trading energy derivatives.


Complete Story »]]> OPBL.OB Think Intrinsic Sally Beauty's Stock Price Decline Is Unwarranted http://seekingalpha.com/article/22940-sally-beauty-s-stock-price-decline-is-unwarranted?source=feed 22940 initial report) announced on Tuesday that they are no longer the exclusive distributors of L'Oreal USA professional products, and that the Armstrong McCall division of SBH's Beauty Systems Group [BSG] would no longer distribute Redken professional products. (See the press release for details) On the news the stock fell 13%. Was the sell-off overdone? We needed to determine the immediate implications for SBH and whether this agreement is a precursor to further problems at SBH in particular or with the industry as a whole.

Short-term Implications

The short term implications were stated in the press release: a $110M (or 5%) negative impact on sales for the last nine months in FY07. This number includes negative indirect impacts on other products. We would like to be able to verify this number but must instead rely on management's best judgment because they have access to much more detailed information. The effect on net income is tough to determine because margins on L'Oreal products aren't as high as private label but any incremental revenue leverages fixed costs. These factors may cancel one another out or result in a net decline in margins. We just can't know without SBH providing guidance.

Affect On The Future

]]> Sun, 24 Dec 2006 05:08:52 -0500 Think Intrinsic initial report) announced on Tuesday that they are no longer the exclusive distributors of L'Oreal USA professional products, and that the Armstrong McCall division of SBH's Beauty Systems Group [BSG] would no longer distribute Redken professional products. (See the press release for details) On the news the stock fell 13%. Was the sell-off overdone? We needed to determine the immediate implications for SBH and whether this agreement is a precursor to further problems at SBH in particular or with the industry as a whole.

Short-term Implications

The short term implications were stated in the press release: a $110M (or 5%) negative impact on sales for the last nine months in FY07. This number includes negative indirect impacts on other products. We would like to be able to verify this number but must instead rely on management's best judgment because they have access to much more detailed information. The effect on net income is tough to determine because margins on L'Oreal products aren't as high as private label but any incremental revenue leverages fixed costs. These factors may cancel one another out or result in a net decline in margins. We just can't know without SBH providing guidance.

Affect On The Future


Complete Story »]]> SBH Think Intrinsic Sally Beauty Holds Enthusiastic Investor Presentation http://seekingalpha.com/article/22081-sally-beauty-holds-enthusiastic-investor-presentation?source=feed 22081 investor presentation for the first time since SBH was spunoff from Alberto-Culver (ACV).

Key quotations include Winterhalter's thoughts on the threats posed by direct marketing and product diversion, how SBH differentiates its products, and the opportunities for growth.

One of the first things I noticed was how enthusiastic Gary Winterhalter is about the future of SBH. In his opening, he said that the management team is "very passionate and very proud," "Sally is a great company," and that the spinoff presents a "tremendous opportunity." It is always good to see this enthusiasm and entrepreneurial spirit as it is one of the factors that makes a good spinoff.

]]> Mon, 11 Dec 2006 03:08:04 -0500 Think Intrinsic investor presentation for the first time since SBH was spunoff from Alberto-Culver (ACV).

Key quotations include Winterhalter's thoughts on the threats posed by direct marketing and product diversion, how SBH differentiates its products, and the opportunities for growth.

One of the first things I noticed was how enthusiastic Gary Winterhalter is about the future of SBH. In his opening, he said that the management team is "very passionate and very proud," "Sally is a great company," and that the spinoff presents a "tremendous opportunity." It is always good to see this enthusiasm and entrepreneurial spirit as it is one of the factors that makes a good spinoff.


Complete Story »]]> SBH Think Intrinsic The Long and Short of Idearc http://seekingalpha.com/article/21674-the-long-and-short-of-idearc?source=feed 21674

The Case for Idearc

We found IAR to be a promising spinoff because of its:

]]> Mon, 04 Dec 2006 05:59:48 -0500 Think Intrinsic

The Case for Idearc

We found IAR to be a promising spinoff because of its:


Complete Story »]]> IDARQ.PK Think Intrinsic Sally Beauty Spinoff Should Unlock Value http://seekingalpha.com/article/21137-sally-beauty-spinoff-should-unlock-value?source=feed 21137 initial report on the Sally Beauty Holdings spinoff just a few days ago, SBH has climbed over 11% (and about 17% since the spinoff on Friday). We believe there are more gains to come, as this spinoff has many favourable characteristics which are still relevant. Most significantly, SBH is 47.5% owned by a private equity firm and has a debt to EV ratio of 60%, providing a leveraged buyout-like situation in which you can invest. Our complete research report is below.

A Very Unique Spinoff
On November 17, 2006, Alberto-Culver (ACV) completed its spinoff of Sally Beauty Holdings (SBH) and paid a $25 special dividend. Shareholders of ACV (pre-spinoff) received 1 share of SBH for every share of ACV. This spinoff was atypical, because Clayton, Dubilier & Rice (CD&R), a private equity firm, purchased 47.5% of SBH as part of the spinoff agreement (the largest percentage while preserving tax-free treatment). Also, SBH funded the $25/share dividend and incurred $1.8 billion of debt. This sets up a situation where you and I can participate in a leveraged buyout. Sound interesting?

Business Description
SBH is a distributor of higher-end hair care, skin care, and related products. The company has two divisions, one distributes to retail and professional customers (Sally Beauty) while the other solely supplies professional salons (Beauty Systems Group, or BSG). See end of report for an in-depth business description.

]]> Thu, 23 Nov 2006 19:05:25 -0500 Think Intrinsic initial report on the Sally Beauty Holdings spinoff just a few days ago, SBH has climbed over 11% (and about 17% since the spinoff on Friday). We believe there are more gains to come, as this spinoff has many favourable characteristics which are still relevant. Most significantly, SBH is 47.5% owned by a private equity firm and has a debt to EV ratio of 60%, providing a leveraged buyout-like situation in which you can invest. Our complete research report is below.

A Very Unique Spinoff
On November 17, 2006, Alberto-Culver (ACV) completed its spinoff of Sally Beauty Holdings (SBH) and paid a $25 special dividend. Shareholders of ACV (pre-spinoff) received 1 share of SBH for every share of ACV. This spinoff was atypical, because Clayton, Dubilier & Rice (CD&R), a private equity firm, purchased 47.5% of SBH as part of the spinoff agreement (the largest percentage while preserving tax-free treatment). Also, SBH funded the $25/share dividend and incurred $1.8 billion of debt. This sets up a situation where you and I can participate in a leveraged buyout. Sound interesting?

Business Description
SBH is a distributor of higher-end hair care, skin care, and related products. The company has two divisions, one distributes to retail and professional customers (Sally Beauty) while the other solely supplies professional salons (Beauty Systems Group, or BSG). See end of report for an in-depth business description.


Complete Story »]]> ACV SBH Think Intrinsic