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Re: glenn1919 post# 229448

Friday, 10/05/2012 5:36:51 AM

Friday, October 05, 2012 5:36:51 AM

Post# of 648987
DEXO now @ $1.16 - Value of $8.15-$8.29
The Future

August 21, 2012

http://seekingalpha.com/article/820951-dex-media-less-risk-together-than-separate


the adjusted price post share exchange for the newly trading company comes in at around $8.15-$8.29, depending on which stock you use to do the conversion.

The Debt/EBITDA of the new company comes in at 3.46.

Since the equity is still being valued at less than $140M, the upside for the company that makes over $600M in free cash flow per year is tremendous!

If you extrapolate the situation out a few years, you'll have the company close out debt at sub-par prices, and eventually be kicking out over $25 per share of free cash flow, even after print declines.

Is that worth $8 today? You betcha. I figure that by the end of 2015, this will be trading over $200 per post-merger share, something that, if you buy today, will result in a 25x return.

This is the easiest money on earth.

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