Hi Jim,Much has been written about RST already on the SA boards, and I'm still not sure if I have confidence in the management team. But if one can find confidence there, then I think RST may qualify as a MUE.Current price: $13.06Disc: 15%4Q Wt. Avg. Dil. Shares: 21.3M1-5 growth assumption: 3.9%6-10 growth assumption: 1.95%Terminal: 0%Historically, their TTM FCF has looked like the following:Qtr TTM FCF YoY4Q10 23.5M (28.3%)3Q10 34.5M 187.5%2Q10 32.0M 48.8%1Q10 37.3M 174.3%4Q09 32.7M 189.4%3Q09 12.0M2Q09 21.5M1Q09 13.6M4Q08 11.3MSo clearly, the market is reacting to the 4Q earnings and FCF numbers, but the question is will management be able to turn that around? I don't think that RST's problems are over, but should they correct their issues in the US market, this could be a profitable trade over time. I'm hard pressed to see them growing at the rates the market is assuming for years ahead. Then again, it's not your least risky MUE candidate....Thoughts?-Dave.
Qtr TTM FCF YoY4Q10 23.5M (28.3%)3Q10 34.5M 187.5%2Q10 32.0M 48.8%1Q10 37.3M 174.3%4Q09 32.7M 189.4%3Q09 12.0M2Q09 21.5M1Q09 13.6M4Q08 11.3M
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