Currently there are 2 strong bids for the lRSB contract.
let's just see who wins the LRSB contract this fall ...........
try concentrating on LOCO and less about the other stuff you
seem to consider investment topics, which is mostly not important
you are crazy or wildly confused ......
I never said SLB would go down to $ 50
where do you dream up this stuff you spew...?????
LOCO planned western states expansion is based upon opening locations in cities
and suburbs where consumers with added disposable incomes will purchase
QS chicken grilled Mexican meals.......those customers with incomes.
Your contention that high school kids determine a QSR nationwide expansion
success is frankly laughable.......
projected growth of revenues/EBITDA impacts a stocks valuation.
Your ''10x ebitda'' statement is a purely historic data set.....
Like driving forward through the rear view mirror......come on..!!
I never like to hear about ''a lot of special items''.....either good or bad
To me it sounds like mgmt trying to rig the data......
and of course you know more than everyone else ..........
Your arrogance is stunning
I bought SLB at $ 69.75 for an addition to my long term position because
I thought the news of the SLB purchase of CAM pushed SLB too low
Will SLB show us a $ 67 ....??? Maybe, but either $ 69.75 or $ 72 are
''lower risk'' entry levels for long term shareholders.
So high school kids is the LOCO growth demographic..????...........I disagree
If they are still serving large sized chicken protein .......it sounds like the erroneous upscale menu
item that produced the poor Q2 revenue results.......
Doesn't seem to me that you have the pulse on the LOCO situation that your cronies would like
us to believe......
I am not short LOCO ..........stop assuming you know more than anyone else......
you wrong again.
The fact that Green Giant has several other suitors interested in buying
this brand means...normally....that the winning bid will have to pay more.....
Maybe BGS buys only the basic canned foods segment......or maybe
buys all of the brand 7 has a buyer lined up for the frozen products
portion of green Giant...? I don't know. I only speculate on possible
BGS actions as a small firm trying to buy a relatively huge brand.....
Even if GIS inflates the EBITDA metrics to get the multiple down........
BGS still needs to locate/fund ''over $ 600 million'' for this possible
........A SPO plus a huge debt funding dilutes current shareholders
and adds risk to the already levered BGS balance sheet......
The idea of buying Green Giant sounds exciting for BGS, but IMO
if even half of this deal goes through, then current shareholders
will not benefit.
Remember BGS was built by buying small, mature orphan brands
with little competition (high margins) not by acquiring large brands
with a lot of generic and national branded competition......
I hope this deal falls through.
If BGS pays between $ 600 to 800 million for a group of brands that generate approx
$ 700 million in annual revenues, that tells me that Green Giant has weak EBITDA
Maybe BGS buys only the canned food Green Giant products and leaves the frozen
products for other buyers...? This would be more in line with BGS product core and
would cost less for BGS to buy new shelf stable brands....JMO though.
Going outside of its core product category (snacks) didn't work too well for BGS
I hope BGS only buys the shelf stable products from Green Giant if that is possible.....
to buy the entire Green Giant line would add tons of debt at a time that BGS is just
getting out from under its recent high debt load.......
This morning on CNBC it said that BG Foods ''is in the running'' to buy Green Giant food brands.
Does this mean there are other firms that BG Foods would have to out bid for this brand...?
If there are other bidders for Green Giant brands, I can't see Cantwell buying the usual BGS
6 to 7 times EBITDA multiple for this brand......so combining its revenues and its potentially
higher EBITDA cost to BG Foods, this deal sounds like it could break the bank for BGS.
''IF'' Green Giant generates $ 100 million in annual EBITDA and BG Foods has to pay 9 times
that EBITDA..........Green Giant wold cost $ 900 million.
Where does BGS get that much capital ? The leverage ratio is already 4 I think.....?
Look for another big SPO to get this deal done........
To me this deal sounds too big for BG Foods to pull off given their current size ..........