John,
Here are some very interesting numbers for RRI:
Cash flow before changes in W/C:
2000 $480,893M
2001 $593,296M
2002 $754,767M
2003 $801,012M
Cash flow has gone up in each of the last four years and was $2.73 per share in 2003, which RRI feels is the bottom of the cycle.
Cap-X net of asset sales:
2000 $3,013,302
2001 $888,069
2002 $3,486,178
2003 $(1,041,891)
RRI generated over $1B in cash from investing in 2003. Net free cash flow (including assets sales) was $6.28 per share.
Net borrowings:
2000 $2,721,156
2001 $999,540
2002 $3,980,726
2003 $(2,888,641)
RRI paid back a net $2.88B of debt in 2003.
Doesn't look like a company at the bottom of a multi year down cycle that should be selling for $6.73 per share to me???
Let's see, cash flow was $2.73 per share, net cap-x was a negative $1B and the company paid back over 31% of it's total debt or $2.88B in one year.
At times like yesterday I need to go back and confirm why I have so many darn shares all in one company. Picked up a lot of shares yesterday at $6.65 and I think I'll join you today in buying back more.
Jim |
