New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Value Ideas and Strategies
Share and discuss value investing ideas and investing strategies.
New Topic
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicLog In
Goto Page:  12Next
Current Page:1 of 2
Bought puts on VMED
Posted by: David Pinsen (IP Logged)
Date: December 10, 2009 10:44AM



Virgin Media (Nasdaq:VMED) caught my eye on the Short Screen screener last night. In addition to having an Altman Z"-Score in the distress zone, the company has been losing money for the last four quarters (though those losses have narrowed somewhat over the last three), and has a fairly high debt load (about $9.5 billion in net debt, versus trailing revenue of $6.6 billion and a market cap of about $5.5 billion). Despite that, its share price has rocketed up from a low of $3.76 back in March, to $17 as of last night's close1. A quick search on Twitter showed several bullish tweets on the stock, based on its technical trends.

Since Virgin Media has options traded on it, I figured I'd buy puts on it instead of shorting it to cap my downside risk. I bought a few of the Jun 10 put contracts with a $10 strike price (NUDRB.X) this morning for 30 cents each.

1The shares of a number of financially distressed companies have had similarly explosive run-ups from their March lows, including one we mentioned here previously, BAGL.

My signature: I blog at [steamcatapult.com]


Stocks Discussed: VMED,
Rate this post:

Rating: 2.5/5 (4 votes)



Re: Bought puts on VMED
Posted by: commodity (IP Logged)
Date: December 10, 2009 03:27PM



Stocks Discussed: VMED,
Rate this post:

Rating: 3.2/5 (5 votes)



Re: Bought puts on VMED
Posted by: commodity (IP Logged)
Date: December 10, 2009 03:54PM

[finance.yahoo.com]

Look at the cash flow .

The are selling at 5 X cash flow.

This is cheap.

This kind of business has a lot of depreciation .

The Z score does not work here.

Value it on cash flow.

What is the free cash flow yield ? It was 25%.

It is not as screwed up as the income statement looks.

Also look at EV to EBITA ratio .


Stocks Discussed: VMED,
Rate this post:

Rating: 3.3/5 (4 votes)



Re: Bought puts on VMED
Posted by: commodity (IP Logged)
Date: December 10, 2009 04:01PM

[www.gurufocus.com]

They even have FREE CASH flow.



Stocks Discussed: VMED,
Rate this post:

Rating: 3.0/5 (4 votes)



Re: Bought puts on VMED
Posted by: commodity (IP Logged)
Date: December 10, 2009 04:04PM


Re: Bought puts on VMED
Posted by: commodity (IP Logged)
Date: December 10, 2009 04:06PM



Stocks Discussed: VMED,
Rate this post:

Rating: 3.0/5 (4 votes)



Re: Bought puts on VMED
Posted by: commodity (IP Logged)
Date: December 10, 2009 04:08PM


Re: Bought puts on VMED
Posted by: commodity (IP Logged)
Date: December 10, 2009 04:13PM



Stocks Discussed: VMED,
Rate this post:

Rating: 3.5/5 (4 votes)



Re: Bought puts on VMED
Posted by: commodity (IP Logged)
Date: December 10, 2009 04:15PM



Stocks Discussed: VMED,
Rate this post:

Rating: 3.3/5 (4 votes)



Re: Bought puts on VMED
Posted by: commodity (IP Logged)
Date: December 10, 2009 04:18PM



Stocks Discussed: VMED,
Rate this post:

Rating: 1.5/5 (4 votes)



Goto Page:  12Next
Current Page:1 of 2


Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK