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

To: TimbaBear who wrote (15479)	9/16/2002 12:19:39 PM
From: Wallace Rivers	Read Replies (2) \| Respond to of 78665

Anyone own/considering F, which we've discussed here at higher prices? My gut feeling (and that really is all this is), is that there is a substantial amount of upside in this stock, plus, if the already reduced dividend holds, you get paid while you wait. I just think Bill Ford will turn this company around.

To: TimbaBear who wrote (15479)	9/20/2002 12:43:57 PM
From: Robert Hoefer	Respond to of 78665

Thanks, Timba, I thought FLM's cash flow was sufficient to pay off 100M of debt ny the end of the year, but only because management and Value Line seemed to be saying that. The cash flow statement is a little complex for me. Since we're at $4.50 now and dropping .50 a day, I guess Fleming will trade at zero in 10 days. There does not seem to be any news out that would justify that, everyone just seems to want to sell. Maybe I'm not as informed as I thought, or there is insider knowledge circulating that I don't have access to. If they sell or close most of their retail stores (announcement due end of Sept.), would that not generate some cash to pay down debt? Or would charges for closing stores mean negative cash flow? Mr. Hansen said that store disposition would be "earnings neutral". Anyone care to interpret that?

To: TimbaBear who wrote (15479)	9/26/2002 6:39:42 PM
From: DukeCrow	Read Replies (1) \| Respond to of 78665

Cash flow is horrible because of working capital investment due to the ramping up of the national distribution network. If this trend continues, Fleming is toast. However, I feel that the deterioration in working capital has peaked, and now Fleming should start generating positive CF from their working capital due to increased inventory turns, an increasing payables/inventories ratio, and sell-thru of the forward buys they did in the 2nd quarter to gain volume discounts from their vendors. Working capital is the thing to watch, IMO, with Fleming. It needs to stay flat or improve over the next few quarters in order for the company to stay healthy.