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

To: Elroy who wrote (65242)	10/22/2020 3:43:08 PM
From: E_K_S	Read Replies (1) \| Respond to of 78774

I am looking at reversion to their mean PE so think there could be some PE expansion. Market just has to be satisfied that earnings estimate are accurate. 07/2021 is $3.44/share and 07/2022 is $3.06/share, so even w/ a 10 PE s/d be priced at $30/share. There 5yr PE is 12x. Also look at Enterprise Value/EBITD Will be watching BV after all the write offs and Goodwill have been expensed. I think it will be higher but more importantly market value of those logistic assets are worth more IMO. Facilities/warehouse located in MN so expands their distribution foot print big time. UNFI was constrained by their distribution foot print...no new warehouses and it was expensive and took time to build new. When that SVU deal came about, it immediately allowed them to grow again. The question is by how much? 100% or more, not unreasonable. If the market prices in some growth (high single digit), PE s/d be in the teens. Going to let this one run. Would be better if they paid a dividend but $3/share in earnings is also very good. EKS