Lee Enterprises (LEE)

[Rawnoc]

LEE is a value stock that I think will be a multi-bagger. Here's why:

(1) LEE's operating cashflow is really huge and consistent. I think its the most important metric to focus on for this type of stock. LEE's cash balance has been consistently growing while its debt has been consistently shrinking.

(2) I think the debt will be refinanced on favorable terms given their cashflow and how nicely they've been paying it off. Refinancing should lower interest expense and greatly increase both earnings and cash flow available to pay down even more debt. It should also remove uncertainty that has made the stock price so cheap and could become a catalyst for a huge run.

(3) I expect advertising rates for their business to continue to pick up especially as we get closer to election times.

(4) The CEO and CFO have both recently bought shares in the open market.

(5) There is a huge short position of 24% of the float according to Yahoo and a short ratio of 4.0 (4 times the average daily volume) leading to the possibility of a short squeeze.