Bosco & Crossy's stock picks,talk area Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Bosco & Crossy's stock picks,talk area

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: JoeinIowa who wrote (3310)	4/21/2003 11:27:00 PM
From: Crossy	Read Replies (1) of 37387

Joe, what price will institutions start to sell IPSU ?? Good question. My first instinct is "BOOK VALUE". But there's more to it. It depends on their earnings potential. Given the low number of shares outstanding they are in a position to create a hell of cash flow. To arrive on a correct "fair value" we should take the cash flow generatng potential into account. Since "physical" invesment levels for IPSU weren't that high and brand investment are intangible - while their creation is incurred at expenses immediately, cash flow trends should resemble earnings pretty close at IPSU. If they can get towards 10% gross MArgins they will generate more than $1.20 in pretax earnings pre share. Cashflow even higher per quarter going forward. Less taxes would still generate around $3 per share per year. In such a context, I doubt that instituions would sell at book value. They might be willing to stay in for a little while longer. Until the company attains industry multiples or is taken over.. rgrds CROSSY

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next