Replies to post #52725 on Savvy Trades and Investments

[bbotcs]

wadegarret: USCR

If the company earned $6, that would be an approximately 500 percent year-over-year increase in the eps. Multiply 500 X $6, and fair value is $3000. Ridiculous, of course. But let's give USCR a PE of 20. Fair value then is a more reasonable estimate of $120. If your eps prediction is correction, this stock is a gift at the current price.

[bbotcs]

wadegarret: USCR

The problem with USCR is its debt. Very bad debt-to-cash ratio, and a negative cash flow, according to Yahoo! Finance. I don't see a dividend in the future. For that reason, I have only a small position.

Have you analyzed their debt? If it has been refinanced at low rates, there probably won't be a problem.