CSG International(CSGS) Capitalization Rate

 2011 year end update:

Price - $15.74
Shares Outstanding - 32.26
market value of equity - $507.72
Interest Bearing Debt - $309.74
Cash & Cash Equivalents - $158.83
Enterprise Value - $658.54
2011 EBIT - $141.70
Pre-tax Cap Rate - 21.52%

Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

Republic Airways Holdings Inc. (RJET) Capitalization Rate

 (in millions except PPS)

Price - $3.39
Shares Outstanding - 48.30
Market Capitalization - $163.75
Interest Bearing Debt - $2,369.00
Cash & Equivalents - $200.00
Enterprise Value - $2,332.75
2011 EBIT runrate - $181.73
Pre-Tax Cap Rate - 7.79%
Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

CBIZ Inc. Capitalization Rate

 (in millions except PPS)

Price - $6.07
Shares Outstanding - 49.89
Market Capitalization - $302.85
Interest Bearing Debt - $297.39
Cash & Equivalents - $.53 (yes only $533,000)
Enterprise Value - $581.70
2011 EBIT runrate - $103.37
Pre-Tax Cap Rate - 17.77%
Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

Energy Transfer Equity, L.P. (ETE) Capitalization Rate

(in millions except PPS)

Price - $39.34
Shares Outstanding - 222.97
Market Capitalization - $8,769.78
Debt & Preferreds - $12,063.24
Cash & Equivalents - $170.87
Enterprise Value - $20,662.15
Normalized 2011 EBIT - $1,352.79
Pre-Tax Cap Rate - 6.55%

Notes: Normalization based on cap spending prior to 2008. ETE deal for Southern Union Co. (SUG) recently approved by shareholders, a $9.4 billion acquisition to include debt.  

Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

iGATE Corporation (IGTE) Capitalization Rate

 (in millions except PPS)

Price - $15.86
Shares Outstanding - 56.61
Market Capitalization - $897.81
Debt & Preferreds - $1,167.10
Cash & Equivalents - $432.41
Enterprise Value - $1,632.50
2011 EBIT Runrate - $90.28
Pre-Tax Cap Rate - 5.53%

Note: 1st came across company in Fortune Dec. 2011 issue and in my Dec screen.


Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

Bally Technologies, Inc. (BYI) Capitalization Rate

 (in millions except PPS)

Price - $38.14
Shares Outstanding - 43.34
Market Capitalization - $1,653.14
Interest Bearing Debt - $506.66
Cash & Equivalents - $61.94
Enterprise Value - $2,097.87
2011 EBIT - $232.07
Pre-Tax Cap Rate - 11.06%
Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

JB Hunt Transport Services Inc. (JBHT) Capitalization Rate

 (in millions except PPS)

Price - $44.91
Shares Outstanding - 116.73
Market Capitalization - $5,242.37
Debt - $768.03
Cash & Equivalents - $7.75
Enterprise Value - $6,002.65
normalized 2011 EBIT - $223.11
Pre-Tax Cap Rate - 3.72%

Note: After pouring over this one, risk/reward favors the house. May reach new high 1Q/2Q 2012 ensued by a large sell off. Expectations in Mr. Market's sentiment won't be met.

Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

Tempur Pedic International Inc. (TPX) Capitalization Rate

(in millions except PPS)

Price - $51.71
Shares Outstanding - 65.93
Market Capitalization - $3,409.29
Debt - $508.50
Cash & Equivalents - $103.01
Enterprise Value - $3,814.77
2011 EBIT Runrate - $348.29
Pre-Tax Cap Rate - 9.13%
Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

Medco Health Solutions Inc. (MHS) Capitalization Rate

 (in millions except PPS)

Price - $55.56
Shares Outstanding - 387.06
Market Capitalization - $21,505.02
Debt - $5,038.60
Cash & Equivalents - $166.80
Enterprise Value - $26,376.82
2011 EBIT Runrate - $2,725.73
Pre-Tax Cap Rate - 10.33%
Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

Express Scripts Inc. (ESRX) Capitalization Rate

 (in millions except PPS)

Price - $44.54
Shares Outstanding - 486.51
Market Capitalization - $21,669.07
Debt - $3,989.20
Cash & Equivalents - $1,062.60
Enterprise Value - $24,595.67
2011 EBIT Runrate - $2,638.80
Pre-Tax Cap Rate - 10.73%
Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

CEC Entertainment (CEC) Capitalization Rate

 (in millions except PPS)

Price - $34.67
Shares Outstanding - 18.86
Market Capitalization - $653.75
Debt - $366.56
Cash & Equivalents - $18.88
Enterprise Value - $1,001.44
2011 EBIT Runrate - $116.15
Pre-Tax Cap Rate - 11.60%
Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

Sunoco Inc. (SUN) Capitalization Rate

 (in millions except PPS)

Price - $39.49
Shares Outstanding - 106.76
market capitalization - $4,215.85
interest bearing debt - $3,524.00
Cash & Equivalents - $1,656
Enterprise Value - $6,083.85
2011 EBIT runrate - $517.33
Pre-tax Cap Rate - 8.50%
Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

Valassis Communications Inc. (VCI) Capitalization Rate

 (in millions except PPS)

Price - $19.11
Shares Outstanding - 44.75
market capitalization - $855.26
interest bearing debt - $606.31
Cash & Equivalents - $91.03
Enterprise Value - $1,370.54
2011 EBIT - $267.59
Pre-tax Cap Rate - 19.52%
Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

Jack in the Box Inc. (JACK) Capitalization Rate

 (in millions except PPS)

Price - $20.35
Shares Outstanding - 43.97
market capitalization - $894.81
interest bearing debt - $468.50
Cash & Equivalents - $11.42
Enterprise Value - $1,351.89
2011 EBIT - $124.69
Pre-tax Cap Rate - 9.22%
Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

Gentiva Health Services, Inc. (GTIV) Capitalization Rate

 (in millions except PPS)

Price - $6.57
Shares Outstanding - 30.79
market capitalization - $202.32
interest bearing debt - $1,008.13
Cash & Equivalents - $221.09
Enterprise Value - $989.35
2011 EBIT runrate - $154.14
Pre-tax Cap Rate - 15.58%
Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

Strayer Education Inc. (STRA) Capitalization Rate

 (in millions except PPS)

Price - $91.86
Shares Outstanding - 12.00
market capitalization - $1,102.77
interest bearing debt - $0
Cash & Equivalents - $76.49
Enterprise Value - $1,026.28
2011 EBIT runrate - $187.64
Pre-tax Cap Rate - 18.28%
Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

International Shipholding Corporation (ISH) Capitalization Rate

 (in millions except PPS)

Price - $19.40
Shares Outstanding - 7.23
market capitalization - $140.23
Long-term debt - $306.10
Cash & Equivalents - $35.52
Enterprise Value - $410.81
normalized 2011 EBIT - $29.35
Pre-tax Cap Rate - 7.15%
Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.

Knoll Inc.(KNL) Capitalization Rate

(in millions except PPS)
Price - $14.76
Shares Outstanding - 47.75
market capitalization - $704.75
Long-term debt - $217.00
Cash & Equivalents - $10.74
Enterprise Value - $911.02
TTM EBIT - $102.75
Pre-tax Cap Rate - 11.28%

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.

CPI Corp.(CPY) Capitalization Rate

(in millions except PPS)
Price - $4.93
Shares Outstanding - 7.04
market capitalization - $34.70
Long-term debt - $70.7
Cash & Equivalents - $2.64
Enterprise Value - $102.76
TTM EBIT - $11.07

Pre-tax Cap Rate - 10.78%
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.

Koppers Holdings Inc.(KOP) Capitalization Rate

(in millions except PPS)
Price - $34.45
Shares Outstanding - 20.60
market capitalization - $709.78
Long-term debt - $301.6
Cash & Equivalents - $59.2
Enterprise Value - $952.18
TTM EBIT - $106.8
Pre-tax Cap Rate - 11.22%

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.