CJR PE 4, 2x cashflow. Earnings growth rate +15% next year.If CJR buys back 1-2M shares down here per month they will easily crush a 15% earnings growth rate next year off of a current 4 PE. How do you say.
Because with the new accounting rules that bumped up their leverage to 3x for a quarter only (by bumping 10 years of lease payments off current obligations on to the balance sheet), that increases EPS by 7 cents/year (see previous post on calculation)
Stock buyback of 1m/m is 5% of shares, which would decrease shares outstanding by 5% so would increase EPS by 1/0.95 or another 5%+....that's easily 12%...........if they bought back 10% of shares which they easily could and should, that would start us off at 17% EPS increase.
Their revenues up 2%/earnings up 4% from operations.......that comes to 16% EPS boost (over 20% the more shares they buy).
At 1.20 of annual earnings is 4x earnings, 2x cashflow.
Oh and don't forget to report all of Estevans spamming defamations so he gets banned #5 or 6