Leo,
Do you still think the short thesis holds, and is it a better short after the recent run-up? I looked at CVA earlier this year as a long idea and passed. I like... login to read the rest
Two likely scenarios:
(1) Upon expiration of the initial contract, the municipality has the right to renew for five years under the current terms. If they do so, the formula used to calculate... login to read the rest
"While the municipalities could choose to give DHC more of the energy revenues, they don’t have any reason to do so."
Why do you assume the energy revenues belong to the municipalities? All they own is... login to read the rest
While the municipalities could choose to give DHC more of the energy revenues, they don’t have any reason to do so. From their perspective, the municipalities are currently providing DHC with money for debt... login to read the rest
As the muni contracts are renegotiated, might the reduction in tipping fees be offset by a bigger slice of the energy sales? Example:
Plant input: 300k tons per year (market rate: $33/ton)
Plant output: 200 MWH per... login to read the rest
perhaps our work was insufficiently or inadequately done (and we currently do not own the stock) but we did a pretty extensive reserach effort on a market by market basis and came to the conclusion... login to read the rest
Chuck,
My argument centers on DHC’s inexplicable run up in price as a result of investors’ using an inflated EBITDA and applying an undeserved multiple to this inflated EBITDA. The capex and cash tax issues... login to read the rest
Interesting write-up. Couple questions:
You wrote:
• Decreasing free cash flow. DHC’s future free cash flow will be reduced by increased capex and cash tax obligations. First, capex spikes every five to seven... login to read the rest
Are you sure you want to close this position Danielson Holding Corp.?
By closing position, I’m notifying VIC Members that at today’s market price, I no longer am recommending this position.
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