GRIL

**springsnailt** Wed Mar 01, 2006 6:46 pm

GRIL
This is a microcap company operating restaurant chains (13 stores as of the lastest business summary).

It has an extremely healthy TTM cash flow from operations.

EV = $19.25M
Cash flow from Operations = $6.5M

EV/CFFO = 2.96, best in its breed.

**teenvestor2** Wed Mar 01, 2006 8:29 pm

No Volume!

**springsnailt** Wed Mar 01, 2006 9:18 pm

It's a microcap low float, what do you expect? As far as it's good value, I'm not eager to sell and wouldn't worry about trading volume.

**teenvestor2** Thu Mar 02, 2006 9:15 am

Soryy, but I'm gonna have to debate with you again :wink:

No volume is very bad - no matter how long you want to own a company. What happens if the accountants for the firm are bad and they're making up the financials, or what if the CEO doesn't really know what he's doing, or what if it shoots up 200% in a week right after you buy it, I could keep saying or what until I'm blue, but no matter rhow much you like a company there is always error in analysis and no volume means you won't have anyone to sell it to if oyu need to.

**blast_investor** Thu Mar 02, 2006 12:10 pm

:D

This stock does have volume. It is thinly traded, Yahoo finance says that its average volume is 3 thousand shares a day.

Of course, for large fund, this does not work, too thin. But for individual investors with several thousands dollar, and less than several million dollars to invest, this volume is enough.

Actually, even when Peter Lynch was managing his mutual fund in Fidelity, he liked thin stocks then as well. The thin stocks were one of the reasons behind his fund' high performance.

The problem I see this stock is not the volume, I do not see value here.

THe cash flow was large, but the cash flow was mainly from working capital changes. The real normalized cash flow was small. The earning was poor. The valuation is expensive. This is not a cheap stock.

The book value of this stock has been dropping as well in recent years, which confirmed poor earning of this stock.

**springsnailt** Sat Mar 18, 2006 1:35 pm

so the operating cash flow of GRIL is mainly from capital expense (e.g., investing in new equipment, restaurant, etc. which increases working capital), instead of money earned? this makes sense.

in this case a better metrics is not to use operating cash flow, but to use operating cash flow - working capital (= EBITA)?

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blast_investor:

The problem I see this stock is not the volume, I do not see value here.

THe cash flow was large, but the cash flow was mainly from working capital changes. The real normalized cash flow was small. The earning was poor. The valuation is expensive. This is not a cheap stock.

The book value of this stock has been dropping as well in recent years, which confirmed poor earning of this stock.