Comments for Stock Value Finder http://stockvaluefinder.com Seeking value in the modern marketplace Mon, 08 Sep 2008 15:58:49 +0000 http://wordpress.org/?v=2.2 Comment on Debt for Equity swap by Tim Ramsey http://stockvaluefinder.com/2008/05/29/debt-for-equity-swap/#comment-1217 Tim Ramsey Thu, 29 May 2008 04:53:17 +0000 http://stockvaluefinder.com/2008/05/29/debt-for-equity-swap/#comment-1217 I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. Tim Ramsey I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog.

Tim Ramsey

]]> Comment on Bowl America rolls a strike by BobK http://stockvaluefinder.com/2007/12/17/bowl-america-rolls-a-strike/#comment-1214 BobK Sun, 25 May 2008 14:35:11 +0000 http://stockvaluefinder.com/2007/12/17/bowl-america-rolls-a-strike/#comment-1214 Hi, This stock showed up on my screener also. Although prices have changed since your analysis was done, I'll use your data for ease of comparison. Here's my thinking: 1. Start with the BWL market cap 2. Subtract the value of the stock portfolio (we can buy the stks ourselves) 3. Subtract the cash (I can hold my own cash, thank you). 4. Do you know the date and value that each bowling center was acquired? We can then use an implied appreciation rate to estimate the current Real Estate value, Then subtract the value of the real estate (if I want to buy real estate I can do it myself) 5. This leaves the implied value of the actual bowling business cashflows. 6. Earnings from operations/implied valuation #5= Cash Flow Yield 1. mkt cap: 5,135,690 shs x $15.91=$81,708,828 2. stk portfolio -$4,167,213 round off your cents! ;) 3. cash -$2,330,704 4. real estate (the big question for everyone these days eh?) I'll assume 1MM per center x 19 centers = -$19,000,000 5. Implied Value of the Operating Co cash flow sum(#1 to #4) $56,210,911 6. Net Cash from Ops - CapEx $5,997,998 - $795,713=$5,202,285 $5,202,285/$56,210,911= 9.25% cash flow yield *** My Comments: 9.25% isn't bad. Obviously, it all depends on the value of the real estate. Again, Do we know the date and price paid for each bowling center? We can then use an implied appreciation rate to estimate the current real estate value. Alternatively (this is by no means professionally done, I just browsed the net) I estimate the value of a bowling alley lane as between $10,000 and $40,000 per lane based on sales of other bowling alleys across the USA. As stated inthe original analysis, Bowl America has 726 lanes. cash flow yield 726 lanes x 10,000= $7,260,000 gets 7.66% 726 lanes x 15,000=$10,890,000 gets 8.09% 726 lanes x 20,000=$14,520,000 gets 8.57% 726 lanes x 25,000=$18,150,000 gets 9.12% 726 lanes x 26,171=$19,000,000 gets 9.25% 726 lanes x 31,950=$23,195,700 gets 10.00% Mind you, 10yr treasuries are yielding 3.84% (today). Bowl America @ 9.00% ish? vs 10 year Treasuries @ 3.84% Quite a difference in risk and reward! This is were the art comes into it. Comments are welcome Hi,

This stock showed up on my screener also. Although prices have changed since your analysis was done, I’ll use your data for ease of comparison.

Here’s my thinking:

1. Start with the BWL market cap
2. Subtract the value of the stock portfolio (we can buy the stks ourselves)
3. Subtract the cash (I can hold my own cash, thank you).
4. Do you know the date and value that each bowling center was acquired? We can then use an implied appreciation rate to estimate the current Real Estate value, Then subtract the value of the real estate (if I want to buy real estate I can do it myself)
5. This leaves the implied value of the actual bowling business cashflows.
6. Earnings from operations/implied valuation #5= Cash Flow Yield

1. mkt cap: 5,135,690 shs x $15.91=$81,708,828
2. stk portfolio -$4,167,213 round off your cents! ;)
3. cash -$2,330,704
4. real estate (the big question for everyone these days eh?)
I’ll assume 1MM per center x 19 centers = -$19,000,000
5. Implied Value of the Operating Co cash flow sum(#1 to #4) $56,210,911
6. Net Cash from Ops - CapEx $5,997,998 - $795,713=$5,202,285
$5,202,285/$56,210,911= 9.25% cash flow yield
***
My Comments:
9.25% isn’t bad.

Obviously, it all depends on the value of the real estate. Again, Do we know the date and price paid for each bowling center? We can then use an implied appreciation rate to estimate the current real estate value.

Alternatively (this is by no means professionally done, I just browsed the net) I estimate the value of a bowling alley lane as between $10,000 and $40,000 per lane based on sales of other bowling alleys across the USA.
As stated inthe original analysis, Bowl America has 726 lanes.

cash flow yield
726 lanes x 10,000= $7,260,000 gets 7.66%
726 lanes x 15,000=$10,890,000 gets 8.09%
726 lanes x 20,000=$14,520,000 gets 8.57%
726 lanes x 25,000=$18,150,000 gets 9.12%
726 lanes x 26,171=$19,000,000 gets 9.25%
726 lanes x 31,950=$23,195,700 gets 10.00%

Mind you, 10yr treasuries are yielding 3.84% (today).
Bowl America @ 9.00% ish? vs 10 year Treasuries @ 3.84%
Quite a difference in risk and reward!
This is were the art comes into it.
Comments are welcome

]]> Comment on Genesee and Who??? by Stock Value Finder » Blog Archive » Nice gain on GWR since last post http://stockvaluefinder.com/2007/07/24/genesee-and-who/#comment-1103 Stock Value Finder » Blog Archive » Nice gain on GWR since last post Mon, 25 Feb 2008 21:53:13 +0000 http://stockvaluefinder.com/2007/07/24/genesee-and-who/#comment-1103 [...] posted about Genesee and Wyoming Railroad back in July of 2007.  At that point in time I really liked the management outlook on the company and highlighted the [...] […] posted about Genesee and Wyoming Railroad back in July of 2007.  At that point in time I really liked the management outlook on the company and highlighted the […]

]]> Comment on Bowl America Special Dividend by Sue Massey http://stockvaluefinder.com/2008/01/25/bowl-america-special-dividend/#comment-800 Sue Massey Fri, 25 Jan 2008 22:00:58 +0000 http://stockvaluefinder.com/2008/01/25/bowl-america-special-dividend/#comment-800 I found your site on google blog search and read a few of your other posts. Keep up the good work. Just added your RSS feed to my feed reader. Look forward to reading more from you. - Sue. I found your site on google blog search and read a few of your other posts. Keep up the good work. Just added your RSS feed to my feed reader. Look forward to reading more from you.

- Sue.

]]> Comment on Bowl America rolls a strike by Stock Value Finder » Blog Archive » Bowl America Special Dividend http://stockvaluefinder.com/2007/12/17/bowl-america-rolls-a-strike/#comment-799 Stock Value Finder » Blog Archive » Bowl America Special Dividend Fri, 25 Jan 2008 21:52:42 +0000 http://stockvaluefinder.com/2007/12/17/bowl-america-rolls-a-strike/#comment-799 [...] Stock Value Finder Seeking value in the modern marketplace « Bowl America rolls a strike [...] […] Stock Value Finder Seeking value in the modern marketplace « Bowl America rolls a strike […]

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