RE:RE:RE:RE:Eric and ATH are not in bed with each other anymore? Anyone? Bingo !
ATH is the pretty one and not high maintenance either ;)
Maxmoe wrote: There is another tidbit I take from his chart. Companies that are close to the X axis are attractive takeover targets. If they are also far to the right, they are more attractive because their reserves will last long after the cash flows pay for privatization. The cash flow also can be used by buyers to pay for an acquisition. Small companies are vulnerable because they have no access to financing so only the big guys like cnq have the cash to buy up cheap companies that pay for their own acquisition. For example if you can buy a company with fcf that pays for the company in three years, all the cash flow after that is free, windfall , accretive. For meg, that would be 27 years worth and ATH, even more than that. So companies high on the chart, must be looking at picking off the ones lower down. Especially if they have long life assets that will be accretive to their own stats. Ath fits the bill for everyone.