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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: jeffbas who wrote (12445)	5/8/2001 4:15:59 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 78481

"LPAC management turned down a $4 per share offer in 2000". They should. Without looking at comparable takeouts, I'd guess this should go for not less than 6 to 8 EV/EBITDA, it's at 3.2 EV/EBITDA now, 4 would be 4.35 EV/EBITDA or a 23% enterprise yield. So my price targets based on conservative takeout would be 6 to 8. A year from now, if HDTV is kicking in and they're showing solid 10 to 15% EPS growth on fairly easy comps, the price of poker will be higher, IMO. That said, there may be another strike speedbump ahead - the Screenactors Guild - SAG. Talks are starting soon: sag.org At this point, this is a very minor position for me and I may add some to it if there's big dip. But given that I don't have such a good feel for the industry, I'm not going to make it a major one.