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

To: richardred who wrote (61928)	5/3/2019 10:58:05 AM
From: E_K_S	Respond to of 78702

Yes and CEO appears to be patient and selective looking for accretive acquisitions. Will be interesting to see what they do Buy. Woulds like to see higher margin items like spices. Also I think an OK core holding especially in recession. Everybody needs food so probably no huge concern that revenues slip much. Also have my eye on USX as it was mentioned as a value Buy here. Earnings out for that one and missed. Stock -12% and offered at an attractive price. No Buys yet but very close to my first Buy point. EKS

To: richardred who wrote (61928)	5/8/2019 10:19:34 AM
From: bruwin	Read Replies (1) \| Respond to of 78702

You stated .... "I do like the pay down of debt" Always good to reduce Long Term Debt (LTD). But in BGS's case its current LTD cost is still quite a large negative factor on its Income Statement and thereby reduces its Bottom Line and its contribution to its Balance Sheet ..... If we look at its LTD over the last 3 years ..... ...... and we "interrogate" what that debt was costing BGS .... ...... We see that :- In 2016 :- (74,4/1715) x 100 = ~4.4% In 2017 :- (91.8/2217) x 100 = ~4.2% So that's an average "debt expense" of about 4.3% If we then look at its latest reduced LTD of 1636 we can approximate its Interest Expense to be :- 1636 x 0.043 = ~71mil. If we then look at what its Operating Income would have been without the sale of its 'Pirate Brand' asset, i.e. ~163mil. then it looks like its current LTD would reduce that by 71/163 = ~44%. That's a fairly large chunk of money going to "the banks" and not to its Bottom Line and to its Balance Sheet ..... One wonders how long it will take BGS to make a reasonable dent in its LTD, bearing in mind that the increases in its Top Line Revenue has gone down quite appreciably resulting in a low Net Income/Net Sales percentage ratio which will slow down its build up of Reserves from which pay down of debt is most likely to come from .....