Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: S. maltophilia who wrote (75497)	4/25/2024 9:41:47 PM
From: E_K_S	Read Replies (1) \| Respond to of 78476

Re: V.F. Corp (VFC) A long detailed Seeking-Alpha article; two takeaways for me How could management make such a 'large' mistake! VFC was not able to recover the alleged tax asset. Since the decision of the U.S. Court of Appeals for the First Circuit upheld the Tax Court's decision in favor of the IRS (decision on September 8, 2023), the company had to write off the now $921 million (disputed taxes plus accrued interest) that could have been otherwise used to reduce debt. and all that Goodwill for companies acquired. Some of that has been written down according to a formula they use. Didn't realize the numbers were so large but I guess expected considering the value of their 'brands'. -------------------------------------------------- I am still impressed by their FCF and more now w/ the dividend cuts. Will hold my small tracking position and watch developments on (1) refinancing debt and/or (2) sale of one of their 'brands'. I think I like the LEG restructure as it is downsizing old inefficient manufacturing facilities. Similar to what UNFI did to expand their distribution/warehouse footprint. However, the biggest difference between UNFI & VFC ; is LEG's debt burden is much more manageable (especially when they sell that real estate in 2025 from facilities closed). ---------------------------------------------------- This loan announced refinanced after the close today. * UNFI ANNOUNCES PRICING OF SENIOR SECURED TERM LOAN * UNITED NATURAL FOODS INC - AMENDED TERM LOAN FACILITY WILL BE A 7-YEAR LOAN WITH A PRINCIPAL AMOUNT OF $500.0 MILLION * UNITED NATURAL FOODS INC: REFINANCING OF TERM LOAN IS EXPECTED TO CLOSE IN EARLY MAY FWIW, UNIF is at/near the price I paid in 2020 ($5.80/share) before it's run to $50 1/2022.