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

To: E_K_S who wrote (47308)	4/4/2012 10:28:27 AM
From: Spekulatius	Respond to of 78717

re SVU - yes the authors looked at consolidated numbers that includes all business units. The problem is that SVU business cannot be easily broken apart. For example you cannot simply look at the pharmacy as a standalone unit because they are part of the store - if the store closes, so will the pharmacy. So, while it is true that the pharmacy would have a higher value, if it were a standalone unit, this is simply not an economic reality. Sam with the distribution business where SVU itself is the largest customer.

To: E_K_S who wrote (47308)	4/4/2012 2:22:15 PM
From: KyrosL	1 Recommendation Read Replies (1) \| Respond to of 78717

Re: SVU Another thing that does not make sense is the author's comment about the dividend. At $74 million, it's a bit less than 10% of FCF. Not a problem, IMO. And the debt. Yahoo shows a $3.7 billion decrease from $9.8 billion to $6.1 billion in less than 3 years. At this rate they will be debt free within the authors 3-5 year time frame. Just like Whole Foods. SVU reports earning next Tuesday. Perhaps things will become a bit more clear then.