Mr. Pink's Picks: selected event-driven value investments Message Board

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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments

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To: RockyBalboa who wrote (13481)	6/13/2000 11:05:00 AM
From: torquatus	Read Replies (2) of 18998

Upon closer inspection, I've changed my mind on hlyw. The cash flow numbers are inflated by not expensing the rental inventory, and with $10+/share in debt, hlyw is no bargain at 7x fcf, which is no prize for a small cap that faces terminal decline. A better bargain is flyr (ahem), which has much better "cash flow characteristics," as they say on tv. Revenues are expanding much faster than expenses, and its trading at a very small multiple to earnings, even smaller to cash flow (amortization chews up a lot of the earnings). Ugly is a retailer that Pink wouldn't touch with my ten foot pole, but an even better bargain if you can look past the shady (but high-margin) business.

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