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

To: Wallace Rivers who wrote (62798)	11/2/2019 3:02:07 PM
From: E_K_S	Respond to of 78464

Re: TLRD and comparing to BGS Both have one quarter of negative FCF I like to look at the Barchart.com cash flows. You can select quarterly and/or Annual. Top Right is a NEXT button that will display next page w/ 5 more quarter/years. This goes way back (more than 10 years) Quarterly cash flows At the very bottom is the "Free Cash Flow". Not so good for TLRD. They turned negative in April - July 2019. Typically one quarter is ok if there was a very good reason like refinancing debt and/or debt repayment. Also look at their dividend payments (I can see why they cut it). ----------------------------------------------------- FWIW, I am looking at other companies in a similar situation to see if servicing Debt and/or refinancing Debt creates these negative cash flows and/or if they are temporary. Large Debts even w/ value are not good TLRD has a lot of debt and I am not confident that their Revenue and Net Income can support that. Very little growth w/ operating expenses and other one time expenses not so predictable. --------------------------------------------------- I am trying to figure out BGS revenues and cash flows and seeing if they can support their 12% dividend even after they refinanced their long term debt (pushed it out 5 years). They have similar situation as TLRD but only one quarter of Negative FCF (June 2019) due to a one time acquisition charge (usually never one time or quarter). BGS has a HUGE short interest at 41% according to shortsqueeze . TLRD has a HIGHER Short Interest at 64% according to shortsqueeze The Value Investor has to look at the specific company situation to determine if the Business Plan allows for Revenue Growth, have expenses been reduced (interest expense from debt refinance, operating from new more efficient production methods) or future expansion of Revenues/Margins though higher margin business (ie tuxedo rentals, high quality pre-packed food products). There is a reason these companies sell at 2 PE (TLRD) or 8 PE (BGS) and/or at/near all time lows and/or huge short interest. It comes down to the Risk/Reward presented. EKS