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Stocks M / Multi-Color Corp.

URL:  https://boards.fool.com/i-know-that-this-is-a-little-late-for-a-response-25854917.aspx

Subject:  Re: Questions about the QuickPak sale to NFI Date:  8/31/2007  12:43 AM
Author:  therye Number:  16 of 25

I know that this is a little late for a response, but better late than never. Here is how I see the quick pak deal. They only paid 6.5 million for the quick pak unit, plus another couple mil to double its operations. So we will say 9 million paid for quick pak. QP provided 18 mil in operating profits, and they sold it for 19.5 mil. The quick pak unit was much less stable than the label buisness, because it was heavily reliant on promotions. The quarter they just released QP actually had an operating loss.

I am very bullish about the position that this company is in. Private equity is drying up, and LABL has the best credit it has ever had and is debt free for the first time in a minute. Not to mention most 19 million from qp will be used for organic growth. Just effectivly raised the dividend by 50%, when they announced the split.

The earnings multiple on this stock is artificaly high because of nearly 4 million in charges that they took in backing out of an acquisition.



Look for improved margins and sales if Miller decides to go with peal away lables.

http://www.bizjournals.com/cincinnati/stories/2007/08/13/daily44.html?ana=from_rss
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