georgemiami

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  • Why We Doubled Our Position in Borders
    Ackman is offering to buy BGP's international operation for 135 million, although the price could go as high as 200 million, as Mr Tilson states. That would give a value of aprox 4 million dollars for each of BGP international superstores. If you give the same valuation to the 509 superstores BGP has in the US, that would give a total of 2 billion dollars plus the 135 million of international operations would total 2.14 billion minus 550 million in debt would give a valuation of 1.59 billion, divided by aprox 60 million shares outstanding would be around 26 dollars per share. That is without counting the value of Waldenbooks. Of course there are the shortys who say that BGP is on the verge of bankruptcy. They are the same who 8 years ago when the stock price went down to 11, said that BGP was going out of business beacause everybody was going to purchase books only via internet. It never happened and BGP has grown in tha past 8 years and will continue to grow. With Ackman owning almost 20 percent of the company you can be sure he will do everything on his power to make sure his investment is profitable. He made the bulk of his purchases at 12-13, so he needs the price of BGP to go above this level to make money. For me the fact that Ackman and other fund managers like Tilson own big chunks of the company is a gaurantee that BGP's price can easily double fron current prices. I'm a buyer and actually own 34,000 shares.
    Apr 20 17:15 pm |Rating: 0 0 |Link to Comment |View article

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