Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Spekulatius who wrote (30578)	4/8/2008 10:53:46 AM
From: Jurgis Bekepuris	Respond to of 78625

Just a correction: I believe TAVFX, not TAVIX bought MBI. :) I own a bit of both. :)

To: Spekulatius who wrote (30578)	4/24/2008 2:32:59 AM
From: Spekulatius	Respond to of 78625

TGS - decided to buy a little of TGS - the largest Argentinian pipeline operator. Y2007 earnings were about 30c/share so the current PE@ 4.2$ is about 14 which is not particularly cheap. However earnings would have been higher if not for currency losses - last year earnings exceeded 70c/share. Further negatives are that the government is meddling in their affairs (regulation) which obviously prevents them from raising prices. on the plus side TGS has a fairly solid balance sheet is strong FCF (they have been reducing debt).The company does not pay a dividend because of regulation. Valuation is 5-6x EBITDA, 1B$ EV for 4000miles of pipeline, storage assets. they probably could sell of the assets as scrapmetal and exceed the current stock price. this could be dead money for a while but it is a cheap and if (big if!) let's them operate in a reasonable framework they will be a multibagger.