CAI - General Chat, page-813

Watching something that jogged the memory on the old rule of thumb about trying to find companies where the EV is at a discount to NAV (discounted cashflows).

We have a current EV of 190-200M.

I wanted to work backwards, to see what scenario future cashflows (NAV) would = current EV (at a discount rate of 15% - heavy discount). That would give me an indication of fair value. See the hypothetical 7 yr (current LOM) cashflows below. It is up to you if you think these numbers are aggressive, about right or conservative. I think they are reasonable as at now but likely to be viewed as stupidly low in 12 months time. Both in terms of $$ and in terms of LOM. And there in lies an opportunity IMHO.

Sentiment changed to back to buy.

PS: Also I spoke with a known involved CAI brokerage house today, asking about keeping me in the loop on any placements for CAI. He said to paraphrase "CR unlikely to be any part of Calidus finance restructure ...".