Observational Notes on AAPL

Journal Entry: 31 Aug 2013

Apple Inc. Capitalization Rate
in millions except shares outstanding

Closing price: $487.22

Shares Outstanding: 908,497,000
Market value of equity: $442,637.91
Debt, fair value: $16,958.00
Cash & Equivalents: 42,606.00
Enterprise Value: $416,989.91

EBITDA less CapEx: $46,197.00

Pre-tax Cap Rate: 11.08%

• published study by Kantar measured a 93% loyalty rate among iPhone owners vs competitors
• iPhone holds a 62.5% share of the U.S. commercial market base
• key growth catalysts are products and new services, opportunities with distributions from carrier relationships, expanding of retail and online stores and overall market expansion
• generated $7.8 billion in cash flow from operations during the quarter and returned $18.8 billion in cash to shareholders through dividends and share repurchases 

I have no positions in the above company mentioned, but may initiate a long position over the next 72 hours.

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Observational Notes on CSX Corp.

Journal Entry: 19 Aug 2013

CSX Corp. Capitalization Rate
in millions except shares outstanding

Closing price: $24.89

Shares Outstanding: 1,018,837,313
Market value of equity: $25,358.86
Debt, fair value: $10,417.00
Cash & Equivalents: $1,017.00
Enterprise Value: $34,758.86

TTM EBITDA less CapEx: $2,378.00

Pre-tax Cap Rate: 6.84%

• CSX provides rail, intermodal and rail-to-truck transload services and solutions to customers
• solid growth in many of its markets and sustained track record of operating performance
• company expects annual earnings-per-share growth of 10 to 15 percent through 2015 off 2013 base
• Will require capital investments over time though scalable w/volume increases in goods transported
• New share buyback program of $1.0 billion shares over two years funded through excess cash and free cash flow

I have no positions in the above company mentioned, but may initiate a long position over the next 72 hours.

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Observational Notes On Vornado Realty Trust (VNO)

Journal Entry: 12 Aug 2013

Vornado Realty Trust Capitalization Rate
in millions except shares outstanding

Closing price: $83.46

Shares Outstanding: 186,991,076
market value of equity: $15,606.27
Debt, fair value: $10,024.74
Cash & Equivalents: $2,369.18
Enterprise Value: $23,261.83

EBITDA less CapEx: $2,010.91

Pre-tax Cap Rate: 8.64%

From the 2Q 2013 earnings call:

• cash position today is $1.1 billion, with over $2.4 billion available on $2.5 billion of credit revolvers
• Chairman and CEO Steve Roth stated, "We have an enormous profit in our Washington business at the value that I believe the stock market values Washington, I would be a buyer rather than a seller of that business all day long."
• closed on the sale of 12 assets with proceeds of $586 million and net gain of $65 million, specifically: LNR for $241 million; the plant in San Jose, California for $203 million; the Philadelphia market's retail property for $60 million; our 50% interest in the Downtown Crossing, Boston site for $45 million; and 8 other retail assets for $37 million

I have no positions in the above company mentioned, but may initiate a long position over the next 72 hours.
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Observational Notes on Nordion Inc. (NDZ)

Journal Entry: 12 Aug 2013

Nordion Inc. Capitalization Rate
in millions except shares outstanding

Closing price: $7.59
Shares Outstanding: 61,909,000
market value of equity: $469.89
Debt, fair value: $42.36
Cash & Equivalents: $81.53
Enterprise Value: $430.72

normalized EBITDA less CapEx: $17.23

Pre-tax Cap Rate: 4.00%

Agreement signed on May 23, 2013 to divest the Targeted Therapies business to BTG plc (BTG) for a cash purchase price of $200 million

From Mr.Steve West, Chief Executive Officer, Nordion Inc., "...made progress on our strategic review, reaching an agreement to divest the Targeted Therapies business to BTG, which we believe unlocks value for our shareholders and leaves us with a focused specialty isotopes business going forward."

Company generated an increase of $6.1 million, or 12%, over revenue of $50.0 million for the same period in fiscal 2012

Specialty Isotopes: Sterilization Technologies - $20.2 million revenue up 36% compared to Q2 2012

Cash & Liquidity position bolstered from sale; $51.7 million of deferred tax assets and $185 million additional cash upon close of sale unaccounted in above Pre-tax Cap Rate

I have no positions in the above company mentioned, but may initiate a long position over the next 72 hours.
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Buffett Disciple Monish Prabrai IBS Hyperdad Presentation

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