Thursday, October 29, 2009

Response to the inflated earnings Lorillard

One of shares of the holding, which I have not beaten their earnings estimates, Lorillard (LO) do not perform well on Wall Street on Monday and had all the short-term traders exit all at one time. The report was not bad, and the reaction, analysts said it was way overblown. This is a short term event and for those of you who are in it, how long to play a stock dividend prospects will pay you $ 4 share dividend, or the most losses Monday in the next year.

As an investor Lorillard you lost money on paper only, and does not sell these securities only losses. Management Top Notch, and for those who want to see it with my own eyes here Monday conference call transcripts for everyone to read. (Thanks to Seeking Alpha for this service).

The company will earn $ 6.35 in free cash flow in 2010, so basically we earn $ .68 cents for every dollar invested in Lorillard total capital. This means that its free cash flow return on invested capital is 68%, which is basically three times more than I'm looking for as an analyst. With regard to its free cash flow return on equity (Tesla), he earns about 122% 2010 Tesla.

These amazing numbers and it amazes me that someone is selling the company, which performs well, that on the main street. Always remember that Wall Street's view of the plant and the main street, where the reality of life. Lemmings came out on Monday Lorillard, but if we are even half the results of Main Street, Lorillard actually put up, will still put up amazing numbers.

No comments:

Post a Comment