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.

Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: DadisKing who wrote (20198)	12/1/1998 9:00:00 PM
From: GBT	Read Replies (1) \| Respond to of 119973

Some info from yahoo board about SER/LOD. Takeover or not looks to be cheap. I get my info directly from the SEC filings. Check out their most recent 10-Q filed on 11/17/98. Total assets of $786,648,000.00 Total liabilities and minority interest of $585,383,000.00 Shareholders equity of $201,265,000.00 This does not include Impac. Also, there are't any intangibles in those asset numbers to scrutinize. So basically we have a company with fairly predictable cashflows, more than adequate interest coverage ratios even with conservative estimates for costing improvements, and very hard real estate assets, in a fairly sleepy (yes the pun was very much intended) industry. As such this company should trade at a much higher P/E ratio than it currently does. And I haven't even gotten to the good part. If Lodgian meets the numbers Cole threw out for next year over the conference call, Lodgian is then currently trading at a forward looking TMC/EBITDA ratio of 6.6. For Lodgian to trade at a modest TMC/EBITDA ratio of say 9 the stock is then worth almost $22 per share by the end of next fiscal year! Since SER's current cost of capital is a little high, and Cole indicated that he wanted to bring that down, we should see even better returns in the share price as the debt part of TMC drops. So I'm looking at my investment in SER with two significant factors: 1. Fairly low risk. (adequate interest coverage ratios, stable industry with predictable cash flows, real assets, and hopefully some executives that learned to stay the hell away from debt swaps) 2. Potentially very high returns. If SER trades at a book value ratio appropriate for the industry we are looking at a stock worth at least $15 per share. If you prefer to look at EBITDA ratios or revenue ratios then it is more like a $20 stock!