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

To: anializer who wrote (34427)	5/9/2009 2:44:40 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78715

CT. I like this tactic also of buying the stocks which at their prices are like perpetual call options. CT, maybe is still one. If I multiply your reported tbv of $14.66/sh. x 21M sh out., that's about $308M. If I use CT's debt, $2.1B per Yahoo, and assume that that's all the further debt that's subject to possible write-off, (i.e no off balance-sheet obligations), then worst-case as much as 15% roughly of the debt (i.e $315M) would have to be written off before tbv evaporates. Not that that would necessarily mean bk for CT, but it would reduce any (most?) margin of safety that I would see. I suspect 15% write-off is possible, maybe not probable though. Who knows? I'll pass on CT for now.