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Message Boards Settings Lincoln Electric Holdings (LECO) - Quote Info
LECO Undervalued      9-Mar-09 08:31 pm    
If a private equity group wanted to take LECO private and conservatively paid 5x debt free cash flow (defined as EBITDA minus CAPEX), they would pay the following:

2008 EBITDA $367,931m
less CAPEX ($72,426m)
DFCF $295,505m

5x multiple = $1,477m

LECO currently is net debt free, with a market cap of $1,127m (or 76.3% of a very conservative takeout valuation).

Very compelling investment at current prices. I know we're in a severe recesssion, but this stock pays you 3.5% to wait around for a rebound or takeout.

Tell me if I missed anything in my due diligence, otherwise someone should place a call to KKR to take this baby private.


Sentiment : Strong Buy
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bi_low_and_...

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  Subject Author Rating Time of Post (ET)  
 
LECO Undervalued
bi_low_and_... Not rated 9-Mar-09 08:31 pm  
 
The company would perform much better privatly as ...
gameman73 Rate it 12-Mar-09 08:31 am  
 
The company growth dropped by 65% in '08....s...
scovey2 Rate it 25-Mar-09 06:52 pm  
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Lincoln Electric Holdings Inc. (LECO)

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On Dec 22: 54.27 Up 0.82 (1.53%)
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