Quote:
Originally Posted by slavdogg
for an LBO company, they're doing just fine and profitable enough.
Stock wise, market doesnt like em. Not a good investment.
by comparison there are companies in a MUCH worse shape revenue, debt wise that have strong stocks.
Check out WWWW web.com
Revenue (ttm): 251.24M
Gross Profit (ttm): 114.38M
EBITDA (ttm)6: 21.73M
Total Debt (mrq): 709.41M
Market Cap (intraday)5: 700.95M
FFN
Market Cap (intraday)5: 33.66M
Revenue (ttm): 331.34M
Total Debt (mrq): 470.79M
Gross Profit (ttm): 223.27M
EBITDA (ttm)6: 85.25M
Either, FFN has a lot of upside to mid teens or WWWW has a lot of downside to penny stock range.
IF FFN was to change it name to Web.com, it'd be a billion $ company.
Some day it might get there, if it can only buy some growth.
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It's not that simple...
WWWW just got the loan, 650m right now, 150m option. It was used to buy Network Solutions end of last year. NetSol had 300m in debt already which was replaced by a chunk of this.
The loan is for 6 years. The numbers you posted above is EBITDA _prior_ to buying NetSol. Consolidated quarterly EBITDA is roughly 40M.
40*4*6 = 960m, plenty of money to pay back the loan in time.
FFN on the other hand, has an outstanding loan of 460m. A big chunk of that is due this and/or next year!
The EBITDA for FFN you posted is also not correct. Their EBITDA was 4.4m Q1 2012! Even their adjusted EBITDA, which means nothing, was only 13m for that period. Even if they can get it back up to 22m per quarter as it was last year, tat means only 88m per year in EBITDA..
Hardly enough cashflow to support their 460m loan that's about to come to an end!
So clearly, those two companies are not even close to the same.
Disclaimer: Any information given here is not meant investment advice but simply my own opinion on public information available!
