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Supermedia Inc.(SPMD) Capitalization Rate

Price - $2.47
Shares Outstanding - 15.4
market value of equity - $38.26
fair value for total debt obligations at September 30, 2011 - $937.00
Cash & Cash Equivalents - $267.00
Enterprise Value - $708.26
Worst-Case Normalized EBIT  - $331
Pre-tax Cap Rate - 46.73%

Given the risk/reward trade-off and diversity of outcomes, full Kelly would weight my portfolio positioning of SPMD around 3%.


Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.

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