GREY:LGVWF - Post by User
Comment by
Nawaralsaadion Feb 07, 2014 9:57am
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Post# 22183426
RE:Short Position
RE:Short PositionThe potential Advantage “Dump” has always been the biggest risk to the story and one the key reasons why LNV traded at a vast discount to peers over the last couple of years. Going forward we should both see a decrease in the short interest and the dissipation of the overhang fears. Longview peers trade closer to 8 EV/DACF while Longview trades for 4.1 based on its 2014 cash flow estimate. I believe the removal of the overhang will increase the multiple by at least one to 5.1 taking the shares to just above $6. Any move higher would require improved execution.
Regards,
Nawar