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Strategies & Market Trends : Value Investing

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From: Mattyice	6/6/2012 8:48:19 PM
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TPX: Alrighty value nerds, got a question. Ive been following TPX - tempur pedic for some while. I was looking at shorting the stock back at $80. My FV calc was around $45 at the time, and i just thought there was a large misconception about the future of their business, also accounting was semi funky and a little confusing..... Well here we are today and the stock dropped 48% today to $22/share. Running some numbers and assuming the company isnt going out of business there may be some value here. With decreasing revenue growth i get about $40/share out of several calcs that i do. The free cash flow undiscounted would pay for the company itself in 5 years. That has worked in the past for me when there is a large margin of safety. What is your experience with a momo stock that dropped out of the sky like this? Any experience with this? Matt

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