interesting article that revealed a lot of value stocks

**zhang242463** Wed Feb 06, 2008 11:24 am

interesting article that revealed a lot of value stocks
http://money.cnn.com/galleries/2008/fortune/0802/gallery.wise_men.fortune/index.html

**zhang242463** Wed Feb 06, 2008 12:21 pm

Re: interesting article that revealed a lot of value stocks
zhang242463 wrote: http://money.cnn.com/galleries/2008/fortune/0802/gallery.wise_men.fortune/index.html
GGC is interesting, before it bought royal group, it has $2.8/sh earning/year. After it bought Royal group and taking on 1.4B debt, it initially lose 1$/quarter, than get cash flow neutral quickly. need to dig more to see if it make sense to buy. What's its restructuring.

**zhang242463** Wed Feb 06, 2008 1:12 pm

Re: interesting article that revealed a lot of value stocks
GGC 07Q3 cash flow is 64M and it paid off 63M debt. At this rate, they can pay off all debt in 4 years, at which time, it will be a company making 250M a quarter, while current company market cap is only 250M. It was traded 3.xx$ (cap = 120M) at beginning of Jan, which is definitely a good deal back then.

**goog** Wed Feb 06, 2008 5:44 pm

Re: interesting article that revealed a lot of value stocks
How did you get the 64M?
zhang242463 wrote: GGC 07Q3 cash flow is 64M and it paid off 63M debt. At this rate, they can pay off all debt in 4 years, at which time, it will be a company making 250M a quarter, while current company market cap is only 250M. It was traded 3.xx$ (cap = 120M) at beginning of Jan, which is definitely a good deal back then.

**zhang242463** Wed Feb 06, 2008 7:17 pm

Re: interesting article that revealed a lot of value stocks
I get 64M from money.msn.com:
http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=GGC&lstStatement=CashFlow&stmtView=Qtr
from income statement here:
http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=GGC&lstStatement=Income&stmtView=Qtr
you can see after they bought Royal group, their cost of revnue/revenue is decreasing every quarter and gross profit, operating income is up every quarter.

**zhang242463** Wed Feb 06, 2008 7:52 pm

Re: interesting article that revealed a lot of value stocks
annual cash flow = market cap for this company. There is huge insider buy... Q3 is not the strongest quarter of the year but Q1 is.

I think in this environment, there are a lot of stocked priced very low. How to set filter to filter them out.

**zhang242463** Wed Feb 06, 2008 11:41 pm

Re: interesting article that revealed a lot of value stocks
looks like MSN messed up with the numbers. 64M cash flow is for 9 month ending Q307 but not 3 month.