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

To: batman10023 who wrote (763)	4/29/2012 6:04:48 PM
From: KirbyJF1	Read Replies (1) \| Respond to of 1876

Battie- I agree with your post, however one must place some value of NovaSTAR's Cash Flow from those bond, using a discounted Cash Flow valuation for expected future income, also if you read the covenants in the Securitizations, the company can also expect to recieve quite large Cash flows from overcollateralzation on at least 1 issue this year of at least 5 cents a share. Even if they are a non reccuring event, they will still be earnings that is tax free, adds value to the balance sheet as well as retained earnings and provide cash for future acquisitions. That has to be considered in the total value of the company. The 54% GROWTH of Streetlinks from year 2010 to 2011 must be considered with a PEG multiple as well. It is very dificult investing in Turn Arounds & if one can't stomach the uncertainties & volitility, they should stick with the Dow stocks that have much more visability. However Turn Around investing with strict self imposed rules can be very Rewarding. Back ward Investing using business Plans from years ago is plainly very IGNORANT. Kirby