Janney Capital Markets warns that the departure of Green Dot (GDOT -2.7%) CFO is significant due to the exec's long tenure at the firm and his role in planning strategy in the face of increasing competition in the payments sector. The challenge: The company's business model is at risk of being disrupted by new players including American Express's Bluebird product. [View news story]
I think it probably means the company will be sold to a larger organization sooner than later.
Playing For-Profit Education Stocks: The Government's Bet On The U.S. Economy [View article]
The federal government hasn't actually invested $32 billion in these schools/students. The vast majority are loans. Although default rates are high, these types of loans can be collected through wage garnishment and other harsh measures (this is the federal government after all). So despite high default rates, actual losses over the long-term are not that significant. So the burden on the federal government is way less than stated.
RSH is selling at less than 50% of tangible book value. That's all the analysis you need right now. Year-end book value of around $6.00 is a reasonable price target in the near-mid term.
Small-Cap Turnaround Stocks With Big Rebound Potential [View article]
I think HHS is the best opportunity on the list. They have a long history of being bought and sold, and at these price levels they are probably on the radar screen of strategic buyers or private equity firms.
Those are 1-time restructuring charges or non-cash extraordinary charges. Cash earnings have been very positive and this year cash earnings are expected to be between $350-$400 million.
Diamond Foods: Investing Now Would Be Nuts [View article]
Hi Jim, I manage a mutual fund (RPCSX) and purchased DMND earlier this summer based on valuation work I had done. Primarily taking the businesses at cost (or acqusition value) and increasing their value just a little, but still way below market value, or current M&A values.
Diamond Foods: Investing Now Would Be Nuts [View article]
If you invest based on a conservative sum-of-the-parts value for the entire company, the stock is worth $30 on a worst case basis and $45-$50 on a best case, or recent M&A multiple basis.
R.R. Donnelley & Sons: Is A Dividend Cut Imminent? [View article]
It's an indication of what their dividend yield could be if they used all their free cash flow to pay a dividend. Obviously they wouldn't do that because they need to pay down debt and do other things. But using well less than half of their free cash flow to a pay a dividend that yields 10% seems to make it "safe". Of course things could deteriorate next year, but a 25% free cash flow cushion seems to help the case that the dividend won't be cut anytime in the near future.
Green Dot Corporation's Cash Provides Stability [View article]
http://seekingalpha.co...
Janney Capital Markets warns that the departure of Green Dot (GDOT -2.7%) CFO is significant due to the exec's long tenure at the firm and his role in planning strategy in the face of increasing competition in the payments sector. The challenge: The company's business model is at risk of being disrupted by new players including American Express's Bluebird product. [View news story]
Playing For-Profit Education Stocks: The Government's Bet On The U.S. Economy [View article]
It's Radio Shack Time [View article]
That's all the analysis you need right now.
Year-end book value of around $6.00 is a reasonable price target in the near-mid term.
Billionaire Howard Marks' Most Promising Stock Picks [View article]
Small-Cap Turnaround Stocks With Big Rebound Potential [View article]
Duff & Phelps Shareholders Should Hope For A Higher Offer [View article]
Duff & Phelps Agrees to be Acquired by Private Investor Consortium [View article]
R.R. Donnelley: Deal Of The Year? [View article]
What do you mean toxic?
R.R. Donnelley: Deal Of The Year? [View article]
And be honest.
R.R. Donnelley: Deal Of The Year? [View article]
Cash earnings have been very positive and this year cash earnings are expected to be between $350-$400 million.
R.R. Donnelley: Deal Of The Year? [View article]
I can only hope all the earnings at companies I own would be this pathetic!
Diamond Foods: Investing Now Would Be Nuts [View article]
Diamond Foods: Investing Now Would Be Nuts [View article]
R.R. Donnelley & Sons: Is A Dividend Cut Imminent? [View article]
Obviously they wouldn't do that because they need to pay down debt and do other things.
But using well less than half of their free cash flow to a pay a dividend that yields 10% seems to make it "safe".
Of course things could deteriorate next year, but a 25% free cash flow cushion seems to help the case that the dividend won't be cut anytime in the near future.