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

To: Paul Senior who wrote (17086)	5/16/2003 11:52:20 AM
From: David	Respond to of 78958

I thought about the dutch auction too and thought maybe management bought back the shares at an undervalued price so the buy-back might not relate to the ultimate sale price. (Seems management's buy-back decision would only be rational if shares were purchased at below value.) Your're right about forward looking prospects in this type of retail. These old klunker department stores seem not long for the world terribly much longer. I believe that new CEO, Byron Bergen, came from Belk's, an old Southern department store chain. Maybe he scouted out EBSC for Belks. I wonder too how the cash flow might factor into the ultimate sale price. The 'normalized' cash flow seems to have remained strong throughout this difficult retail environment and as I recall EBSC retired a lot of debt over the past several years. Just some thoughts.