Global Value Investing

[throwerw]

meh, what a surprise, people don't see the value here yet. that's ok, gives me time to find more money and buy more.

EBITDA margin for the quarter was 51.5%. Tellier would have us believe margins will "mitigate" to 40%. To be conservative, I'm using 40% from here on out, even though any decline would be gradual. 50m capex annually (I think this sounds too high but whatever), 75% of FCF going to principal repayment, 782m net debt. I'm still seeing net cash in 2017 and almost $7/share of FCF.

As for capital allocation, management's hands are pretty well tied due to the covenants of the recap. I think this bodes well for long-term shareholders as there should eventually be very little balance sheet risk, although a buyback now would be great.