Contrarian Value Ideas

[gfp927z]

Derf, >> LNC <<

Not being an accountant or securities analyst, I can't really understand the 'numbers' for some of these financial sector stocks. REITS can also have some bizarre numbers. Looking at LNC, Yahoo Finance has the cash level at over 7X the market cap (?), and debt at 2X. Levered cash flow is a negative 5X of the market cap (?), the dividend over 6%, but the payout ratio only 19%. These numbers would make sense to a Warren Buffett, but not to the average investor. The ultra low PE of 3-4% would be in the same category, so concluding that the stock is ultra cheap might not be accurate.

Market cap - 5 bil

Cash -------- 38 bil
Debt --------- 9 bil
Rev ---------- 14 bil

Levered Free Cash Flow -- negative 34 bil

Dividend ------ 6.1%
Payout Ratio - 19%



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