tag:blogger.com,1999:blog-2080506270244832638.post3832907703313814723..comments2024-03-28T07:17:13.573-05:00Comments on Clark Street Value: Franchise Group: In Exclusive Acquisition Talks w/KohlsMDChttp://www.blogger.com/profile/10679835609782815537noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-2080506270244832638.post-18468629570606729652022-07-01T08:26:18.616-05:002022-07-01T08:26:18.616-05:00No deal, sounds like the real estate financing was...No deal, sounds like the real estate financing was the breaking point.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-49826531188222027622022-06-22T16:33:38.863-05:002022-06-22T16:33:38.863-05:00https://www.cnbc.com/2022/06/22/franchise-group-co...https://www.cnbc.com/2022/06/22/franchise-group-considers-lowering-kohls-bid-closer-to-50-a-share-from-60.html<br /><br />CNBC is reporting that FRG is looking to recut the deal at $50. Either this is FRG's way of getting out of the deal or maybe they get a little discount, say somewhere in the middle at $55. But it would contradict prior reporting that FRG wasn't considering a lower bid, hard to know how to take this news.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-83914810983191733032022-06-21T20:48:31.012-05:002022-06-21T20:48:31.012-05:00Because I subtracted rent, you could include the O...Because I subtracted rent, you could include the Oak Street financing if you wanted to (you'd also want to include the operating leases at current-FRG too), but then use EBITDAR. It would be cheap either way.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-67586572723814973082022-06-21T16:08:46.085-05:002022-06-21T16:08:46.085-05:00Why don't you include Oak Street financing in ...Why don't you include Oak Street financing in the EV figure?Atonhttps://www.blogger.com/profile/16807818635170312966noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-29688585675492061992022-06-21T15:01:24.347-05:002022-06-21T15:01:24.347-05:00I don't think it will trade there either, but ...I don't think it will trade there either, but just showing that target number for illustrative purposes on how cheap it could screen at least.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-19695744243023673422022-06-21T14:19:17.987-05:002022-06-21T14:19:17.987-05:00Thanks for the idea! I took a glance at the compan...Thanks for the idea! I took a glance at the company and agree that the valuation does look enticing. However, I can't get over how exposed the company is to the consumer with 44% of revenue coming from American Freight, Badcock and Buddy's (as you mentioned). Add KSS to the list and things look even bleaker. 6x EBITDA sounds cheap on an absolute basis, but I don't see why it should trade higher. I also find it hard to believe that the market would trade up to $116 assuming the KSS transaction gets done, however, I've been wrong many times.plantfoodnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-48082162503683147262022-06-13T22:51:20.678-05:002022-06-13T22:51:20.678-05:00Believe it or not the retailer FRGP bought is name...Believe it or not the retailer FRGP bought is named Badcock, not Babcock. The jokes write themselves.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-907283700091888052022-06-12T19:25:17.309-05:002022-06-12T19:25:17.309-05:00Performing pref stock isn't really my specialt...Performing pref stock isn't really my specialty, but since I like the equity, I think the pref is very well covered.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-84661175929690379652022-06-12T19:15:33.609-05:002022-06-12T19:15:33.609-05:00What is your opinion on FRGAP? It has fallen back ...What is your opinion on FRGAP? It has fallen back a bit here.George S.https://www.blogger.com/profile/14006447095123318692noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-20990679430799571982022-06-12T14:14:28.123-05:002022-06-12T14:14:28.123-05:00Excellent read! Very informative!Excellent read! Very informative!Anonymousnoreply@blogger.com