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Strategies & Market Trends : Value Investing

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To: Jurgis Bekepuris who wrote (39157)	9/9/2010 1:59:33 PM
From: Rainmaker888	Read Replies (1) of 78594

Unilens Vision - Jurgis, I see that the company issued $6.5m in a facility from Regions bank with a variable interest rate. ? Do you know why they bought out their largest shareholder Uniivest Holding AG? I am very curious what else you see in the company. The shareholder right now is getting a 8% return on FCF (including the large royalties), given the EV value of about $15m with the new debt issuance. I normalized the FCF for the year using the past qtr figures with new interest expense, I arrive at about $1.2m. ($1.2m/15m = 8%) I like to see a FCF return of at least 15%, preferably 20%. Unilens' core lens business is also loss making due to higher competition and a slower economy. They also pay out most of net income via a dividend, exposing the shareholder to higher taxes (doesn't matter since they can't invest it at higher return given the state of the core business). ....am I missing something special??

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