I like SUL but the current deal is bad for shareholder return. They over paid for Rebel
they try to expand too fast and history will tell you they will pay a sorry price for it ..
SUL now off my list until they clean the system of this bad deal.
$610m for a business that generate $77m EBITDA and EBITDA in my book is a bullshit figure (I thank uncle Charlie Munger for this tip many years ago)....
I want NPAT/EPS, the true figure not Bullshit figure etc..how much profit left after you take out Tax, Depreciation, Interest etc..?
It is going to be a shocker Return on Equity and dilute earning per share.
Brokers seem to like it for some reason because it delivers increase earning but dilutes per share earning!!
Wonder what planet these guys lives on.... of course when you buy other business, your overall earning going to increase what matter is does your EPS increase..if not shareholder get a SH*T deal
SUL Price at posting:
$6.13 Sentiment: Sell Disclosure: Held
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