information about this company this morning and decided to buy. They
had negative earnings last year and haven't done well over the past 3
years which has dragged their stock from $20/share to $5/share. But
they are projected to have positive earnings this year (2011) and
their current projected stock target by the analysts is $7.60/share
for this year. This stock is trading at a discount of 24.74%, when
comparing the current price of $5.55 vs. the target price of $7.60.
Their total levered free cash flow is at 214.56M, which represents
about 44.52% of the company's market cap.
However, they have significant debt and long-term liabilities which
means they will need to generate significant cash flow and earnings to
keep up with debt payments, which is probably the biggest reason why
the stock is down. But as the economy improves, this stock should
move steadily up. I'm hoping for $1 increase in the stock price in
the next 6 months for $1000 gain.
And besides, I have to have faith in the building sponsor of my Utah Jazz!
JG
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