A number of market commentators have drawn positive attention to the low PE multiple and high dividend yield of B&G Foods (NYSE: BGS). While we would not go so far as to call B&G Foods a value trap, the stock still carries material downside risks. In particular, the long thesis should, at a minimum, take into account the B&G Foods leverage, payout ratio and management compensation incentives.
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New SA Article on NJR / SJI Merger Speculation
New article on New Jersey Resources / South Jersey Industries merger speculation. Most likely outcome, if there is any deal at all, is a low premium merger-of-equals. A 30% premium, 50% stock / 50% cash deal is also possible but requires some transaction structuring and extensive merger due diligence
Read MoreTwitter A Failed Business Model?
Twitter is often portrayed as a failed business model. If this is true, does it deserve its current trailing sales multiple of almost 5 times (!). An 80% post-IPO price decline might sound excessive but the trading multiples suggest the worst may not yet be behind us for Twitter stockholders
Read MorePDLI value trap - adjusted EBITDA multiple
Adjusting the PDLI trailing EBITDA multiple for the equity research consensus earnings estimate, and assuming a 35% tax rate, the pro forma PDLI forward EBITDA suggests it is not, in any meaningful sense of the word, a "value" stock