Based upon modest revenue growth over the next few years, I personally believe that if ETM were to dedicate all of its FCF to debt reduction, it could pay down ALL of its debt in little more than 5 years.
I STILL feel I don't own enough of this stock....even though it represents about 8% of my total portfolio.
As they pay down debt, they're interest rates are going to go down, interest expense is going to go down, and earnings are going to go UP. And a lower leveraged company is a company that will be valued higher on the Street. They're going to earn $2+ in EPS within 3 years, and with the leverage expected in 3 years, the company will be selling for somewhere around $30 a share. Hold for 3 years, and you have a good chance of making 6x your money. Or wait for a management led buyout at $10+, imho, if the stock stays at $5-6 for any length of time.
any mgmt that pays $10 per share when they could have paid 56 cents per share 2 years ago are foolish, irresposible, and deserve to lose their jobs. anybody investing in said mgt. should lose all their money.
At a $5 and change stock price, the market cap of the 24 million shares not owned by management is about $125 M. Yet, annual free cash flow is running $100M+. The absurdity is that little more than ONE YEAR'S of annual free cash flow could buy out ALL of the minority holders, based upon the current stock price. If that doesn't PROVE dramatic undervaluation, I don't know what does.