MGT 401, Activity Week-3

I get the fourth thought in vain. Stock is right now at $29, then take out 5 each offer
in genuine cash for $24 current expense for $2.50 EPS or 10x.

$4.30 EPS in 4 years x 12 P/E different + $15 each offer in exchange = $67 in for
spendable mixture five years, so $29 to $67 is 17% disturbed advancement over 5
years.

I believe they can continue what they are doing as of right now. They have 20%
edges. $4.30 EPS- -4 years out.

Joel Greenblatt: eventually people (the mkt.) stirs the stock goes up more than 17%
consistently. The expense does not go up in a steady manner. 19% in one year

ANF: $1.80 they win in this year.

Base case for ANF without building up the business is paying $29 today with a 10 x
different for $2.40 EPS and ($29 - $5/sh cash). You have space for more than 100
ANF stores and 500 more Hollister stores. On the additional stores, ANF will procure
more $2.50. Work after capex. besides, new store capex. you are netting $2.00 each
offer and taking after five years you have an additional $10 each offer to add to the
$5.00 each offer in genuine cash. There are things you can do with the cash like buy
back stock (expanding the estimation of this circumstance).

Knotty returns: year 1 ANF goes up 19% to $48 then 9% annualized return for quite
a while.

Trust in stellar, speedier returns.

Assumptions: improvement and edge of wellbeing.

For Margin of Safety: Leaving out other extraordinary things that can happen to ANF:

ANF: We get free- -the fourth thought.

The edge of security: we overlooked all these changed potential results. We have
space for slip.

Essential: comp store bargains. Further impact their operations: better sourcing, et
cetera.

Divider Street focuses on the wrong estimations. Comp Store Sales and P/E
Multiples versus improvement of the business general versus comp. Store bargains.

What is through and through structure out?

Dismissal slapping on items on improvement rates.

Judge nature of organization

ANF focused on edges. They take a strict unfriendly to constrained time position.
They haven't cut expenses. Mgt. might free for all and cut expenses when a thought
begins to age. They may offer items at a markdown.

Linda: Look at total frame out of stores. What will they make? Study each of their 3
extraordinary associations. Do an entire of the parts examination. KEY!

A 8.5% after-evaluation yield- -I am pleasing with that.

More clear to do a total frame out for quite a while, what are edges with additional
stores? Get the strategy instead of slapping a different on it.

ANF is upgrading Gro

There could be an open entryway for Wetseal. Why are edges are down?
Opportunities with low edges -turnarounds.