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

To: Jurgis Bekepuris who wrote (39157)	9/9/2010 1:59:33 PM
From: Rainmaker888	Read Replies (1) \| Respond to of 78593

Unilens Vision - Jurgis, I see that the company issued $6.5m in a facility from Regions bank with a variable interest rate. ? Do you know why they bought out their largest shareholder Uniivest Holding AG? I am very curious what else you see in the company. The shareholder right now is getting a 8% return on FCF (including the large royalties), given the EV value of about $15m with the new debt issuance. I normalized the FCF for the year using the past qtr figures with new interest expense, I arrive at about $1.2m. ($1.2m/15m = 8%) I like to see a FCF return of at least 15%, preferably 20%. Unilens' core lens business is also loss making due to higher competition and a slower economy. They also pay out most of net income via a dividend, exposing the shareholder to higher taxes (doesn't matter since they can't invest it at higher return given the state of the core business). ....am I missing something special??

To: Jurgis Bekepuris who wrote (39157)	9/16/2011 1:59:05 PM
From: MCsweet	Read Replies (2) \| Respond to of 78593

UVIC, This stock got clocked after the dividend cut and looks like a buy here. Jurgis, do you think there is much risk the royalty income goes away or do you think it is more likely than not to continue on indefinitely or at worst decline gradually? I am inclined to buy some more (own a stub position), but not back up the truck. The negative net worth makes me somewhat antsy and the stock trades like my typical roach motel stocks (you can check in but in a bad market you can't check out). That being said, the earnings, dividend, and cash flows look attractive. Thanks, MC