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jch548 1 post  |  Last Activity: Sep 17, 2015 10:50 AM Member since: Aug 2, 2001
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  • jch548 by jch548 Sep 17, 2015 10:50 AM Flag

    Barron's had bullish spin for MEG over the weekend. The gist is the combined company will have a 25% FCF yield.

    I looked at MEG's latest guidance for 2015. On a stand alone basis MEG is looking for around $180mm in FCF. That is only around a 12.5% FCF yield.

    To hit the 25% FCF yield the analysts must be forcasting quite a large uptick in 2016 revenues as cost synergies are only estimated to be around $80mm.

    What do you MEG followers think of the Barron's piece? Is a 25% FCF yield possible out of this deal? I'm sensing this might be a stretch.