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: Mr. Pink who wrote (6450)	1/28/1999 12:21:00 PM
From: TRIIBoy	Read Replies (2) of 18998

Latest offering to Pink: Octel (OTL), makes leaded additives for gasoline (TEL) seller of gasoline. This was spun-off last year from GLK. Sounds crappy right. Well, you are right, except OTL makes 80% of the world's supply of TEL (which is declining because of the envirnomental effects). However, OTL is a cash machine and the ULTIMATE value play. Stock is at $13.50, yet it is going to earn over $4.50 in fiscal 1998. EBITDA after capex will be close to $200 million, meaning it trades at a little over two times cash flow. Also investing cash into petroleum business. Conference call on earnings on Feb. 10: 1-800-283-1693 Road show feb.10 through 12th. Net present value of cash flows, assuming a 15% drop in sales of TEL everyear is $25 to $30. Company is buying back stock, paying off debt. This is my best idea to his pinkness ever. I hope my hard work helps pay off my indebtedness to him from making me so much money last year.

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