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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (14157)	9/20/2000 5:43:36 PM
From: TRIIBoy	Read Replies (1) \| Respond to of 18998

Smarter people than me brought me VC, but here is my "short" summary: It trades at 2.0 times trailing EBITDA, 4.9 times the lowest estimate for 2000 of $3.28 a share on Wall Street and 4.6 times the lowest estimate for 2001 of $3.50 a share. This company has $20 billion in sales yet a market cap of $2.2 billion, tangible book of $24.11 a share. Earnings are actually growing. I think the company will earn (depending on the Bridestone situation) $3.30 to $3.40 this year, making up the shortfall next year earning $3.80 in 2001 and at least $4.00 in 2002. Next year if it simply trades 8 times what will then be trailing earnings of $3.30, it would trade at $26.40 a share, a 65% appreciation potential. The company should announce a major buyback soon. Gary Lapidus, an analyst at Goldman Sachs, said in a recent research report that VC should generate around $200 million in FCF this year and $400 million next year. This is fresh ammo for a buyback. There is an upside in VC: fuel cells.VC created their distributive power group a year and half to develop these technologies from their engineering skills that they had from working with cars. A highlight is their ownership of approximately 11 million shares in soon to IPO Hydrogen Burner Technology, (http://biz.yahoo.com/rf/000911/n11559198_4.html). Hydrogen and VC will share the technology, and Visteon will manufacture the fuel cells for Hydrogen. Let me repeat that, VC will be making fuel cells for non-automotive applications. If you take a quick look at some of the distributive power companies from Ballard Power (BLDP) to Capstone Turbine (CPST), you have stocks that are selling at 3 to 4 times all of Visteon with little or no sales. I think that by the end of next year it could trade at 10 times "low" earnings of $3.50 a share in 2001 and trade at 35 a share, which would only be a rise of 119 percent.