Savvy Trades and Investments

[abh3vt]

DESP. I do follow it, and saw the last earnings report. IMHO they have a poorly constructed non-GAAP presentation, and I don't agree with their non-GAAP earnings results. I don't agree with: not excluding the tax benefits (I wouldn't have included them AND I would have applied some kind of tax rate) and excluding the pref dividend expenses (I think they should be included unless you adjust the FDS count). Having said all that, they did show decent growth and good improvement y/y with their adjusted pretax margins. Its been selling off on the disappointing top-line guidance, and the local economic outlook for travel in South America. Growth is there, but not at the previous expectations. My adj fd eps for Q2 would have been 0.18, not 0.36/sh. I haven't looked at the Ev / EBITDA ratio which is another confirmation of relative value.

Bottom line, I'd be more interested at 9 or below. My sense of FV is about 25% higher than that.