Author Topic: Ask Packer - No Seriously, Ask Him Anything (AHA)!  (Read 295385 times)

Packer16

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Re: Ask Packer - No Seriously, Ask Him Anything (AHA)!
« Reply #370 on: May 18, 2015, 07:58:15 AM »
AIQ and Interlot are both attractive with Intralot having more upside and risk due to Greek and EM exposure. 

I looks interesting.  I will take a look.  Thanks.

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Phaceliacapital

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Re: Ask Packer - No Seriously, Ask Him Anything (AHA)!
« Reply #371 on: May 18, 2015, 08:59:16 AM »
There's a not so old writeup on VIC in case you're interested.

I think it's striking that bonds are trading at these levels with such a leverage.
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ageofsocrates

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Re: Ask Packer - No Seriously, Ask Him Anything (AHA)!
« Reply #372 on: May 18, 2015, 10:32:34 AM »
Hi Packer,

Just had a quick question to ask related to valuation. In the earlier posts, you mentioned using enterprise value to ebitda to screen stocks. Why not use enterprise value to free cash flow instead? does this strategy screen poorly?

one-foot-hurdles

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Re: Ask Packer - No Seriously, Ask Him Anything (AHA)!
« Reply #373 on: May 19, 2015, 04:13:09 PM »
Regarding your rule of buying equity where debt trades significantly below par, any opinion on Intelsat? Leveraged at 7.5x EBITDA but nearly all bonds are trading at or even above par.

Just started looking at this one, down 7% today

ageofsocrates

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Re: Ask Packer - No Seriously, Ask Him Anything (AHA)!
« Reply #374 on: May 22, 2015, 08:19:08 AM »
Hi Packer,

Just had a quick question to ask related to valuation. In the earlier posts, you mentioned using enterprise value to ebitda to screen stocks. Why not use enterprise value to free cash flow instead? does this strategy screen poorly?

Hi Packer,

just to add in to my question. Any filters do you use when identifying companies and how do you normalize earnings?

Packer16

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Re: Ask Packer - No Seriously, Ask Him Anything (AHA)!
« Reply #375 on: May 22, 2015, 08:39:13 AM »
EBITDA is applicable to firm in a life stages.  FCF is most relevant in the mature phase.  In most cases if you find a cheap MVIC/FCF company it is also cheap on an MVIC/EBITDA basis.  I really use this metric to look at companies in a similar industry (content for example) and find the cheapest and try to understand if the discount is warranted. 

I do look at normalized metrics in cyclical industries.  The nice thing about EBITDA is that it is not as volatile as FCF.  You just need to be careful in understanding the use of EBITDA in comparisons.

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kab60

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Re: Ask Packer - No Seriously, Ask Him Anything (AHA)!
« Reply #376 on: June 03, 2015, 01:06:51 PM »
Did you look at Cellcom Israel? Thought you might find it interesting. Not sure what the debt trades at.

Packer16

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Re: Ask Packer - No Seriously, Ask Him Anything (AHA)!
« Reply #377 on: June 04, 2015, 03:33:59 AM »
I haven't looked at Cellcom recently.  I will take a look.  Thanks.

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Phaceliacapital

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Re: Ask Packer - No Seriously, Ask Him Anything (AHA)!
« Reply #378 on: June 23, 2015, 12:40:10 PM »
Packer, I have a quick question regarding business valuation.

When valuing a construction company (contractor business), do you consider performance bonds as liabilities and thus do you add these to calculate the company's EV?

Thanks!
The harder you work, the luckier you get.

constructive

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Re: Ask Packer - No Seriously, Ask Him Anything (AHA)!
« Reply #379 on: June 23, 2015, 01:41:04 PM »
Packer, I have a quick question regarding business valuation.

When valuing a construction company (contractor business), do you consider performance bonds as liabilities and thus do you add these to calculate the company's EV?

Thanks!

I wouldn't. Work in progress is a business risk, but not a liability. They are a liability for the insurance company who writes the policy.