The bigger problem for bulls is how much
the current share price already implies Expedia's profits will grow.
Not exact matches
Because TRC's offer
price is at a
price below the
current market
price, Kraft Heinz recommends that stockholders not tender their
shares (i.e., take no action) or, if they have
already tendered
shares, withdraw their
shares by providing the written notice described in the TRC mini-tender offer documents prior to the expiration of the offer, currently scheduled for 12:01 a.m., New York City time, on Wednesday, December 14, 2016.
While the
current price / peak - earnings multiple is
already at an elevated level above 18, what I'll call the «P / E equivalent» multiples on other fundamentals are: 21 on the basis of book values, nearly 23 on the basis of enterprise value / EBITDA (which factors in the increasing
share of debt on corporate balance sheets), over 25 on the basis of revenues, and 29 on the basis of dividends (largely because dividend payout ratios remain relatively low even on the basis of normalized earnings).
«A giveaway or a loss - making firesale at the
current share price would add billions to the national debt at a time when poor economic growth
already means borrowing isn't coming down,» he told the Times newspaper.
My only thought about this tender is that the
price range is rather odd since the stock is
already trading at $ 42 /
share; why anyone would tender below the
current market
price is not clear to me.
The
current $ 10.50
share price offers a v cheap opportunity to implement the 5 million GDR
share buyback that was
already approved in Dec - 11.
[NB: i) Church House's Argo stake is held by the Deep Value Investments Fund, managed by Jeroen Bos — if you haven't read it
already, I can highly recommend his recent book «Deep Value Investing», ii) XXX Capital Management is a well - known European hedge fund, which hasn't publicly disclosed a holding in Argo to date, hence the redaction — Argo management are obviously aware of their shareholding & support, and iii) the letter was based on a GBP 14p
share price & a higher GBP / USD rate — at the
current 13.875 p
price and exchange rate, Argo now trades at a 36 % discount to net cash and investments, and a 47 % discount to net tangible assets.]