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Observational Notes on Rockwood Holdings Inc.

Journal Entry: 29 Sept. 2013

Rockwood Holdings Inc. Capitalization Rate
in millions except shares outstanding
Closing price: $66.97
Shares Outstanding: 74,701,097
Market value of equity: $5,002.73 M
Debt: $1,294.20 M
Cash & Equivalents: $2,734.60 M
Enterprise Value: $3,562.33 M
EBITDA less CapEx: $164.2 M
Pre-tax Cap Rate: 4.61%


Opinion
  • opportunity to buy an attractive specialty chemical company poised for takeover
  • $80 - $90 LBO target valuation for 2013 & 2014
  • Core businesses: lithium & specialty treatment hold high potential given growth in electronic auto industry
  • Lithium & Specialty treatment businesses hold high market share leadership; Globally No. 1 & No. 2, respectively
  • optimizing pro forma cash on hand through organic growth, accretive acquisitions & return of capital to shareholders
Company

   

Post Asset Sale Restructuring
Competitors
  • continued restructuring of core & non-core businesses allowing for a more focused enterprise
  • increase in market multiple due to specialized and high cash margin business ops.
  • continued goal of maximizing and returning shareholder value from talented executive & operational teams
  • M&A interest for newly restructured company due to realized economic growth
Risk Considerations
  • electric auto industry growth slower than expected
  • Not everyone could do a deal of the company's size, so no M&A interest evolves
  • Unexpected macroeconomic downturn particularly to Europe's auto industry
  • global currency to US dollar issues; largely denominated in Euros
have no positions in the above company mentioned, but may initiate a long position over the next 72 hours.

What Observations have you found on ROC?
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Observational Notes on Aqua America Inc.

Journal Entry: 23 Sept. 2013

Aqua America Inc. Capitalization Rate
in millions except shares outstanding
Closing price: $24.28
Shares Outstanding: 141,170,775
Market value of equity: $3,427.63 M
Debt: $1,802.64 M
Cash & Equivalents: $4.27 M
Enterprise Value: $5,226 M
EBITDA less CapEx: $-183.47 M
Pre-tax Cap Rate: -3.51%

have no positions in the above company mentioned, but may initiate a long position over the next 72 hours.

What Observations have you found on WTR?
Click on comments to Leave your opinion

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