Mega Brands Inc MBLKF

RE: RE: RE: RE: Clarification on something I am mi

[jjsto]

So, I agree FFH that "margins are the key driver of share price improvement." I closed out my position in the warrants a long time ago, so I havent looked at the numbers in a while. Back then, I looked at the 03,04,05 annual reports and tried to get a feeling for the business both pre and post rose art acquisition in terms of margins. Once the recall/litigation began, the numbers basically became useless in terms of making comparisons. Recently with the warrants trading this low, I am tempted to go back and run the numbers again. I would imagine the stock/warrants are looking cheap again on both a sales/EV and est earnings/EV basis. (EV = market cap + debt + market value of warrants) If this years 3q and 4q sales are about equal to or better than last years and margins hold up, then it would seem like returning to a range around +/- $10 stock and .19 warrant would be reasonable. Buying back the warrants may be a great investment if management was confident in the future, but I dont remember the Bertrand's being too keen on share buybacks or warrant buybacks. In fact, since the initial re-capitalization, have they bought back any shares or had any insider purchases?