dav1234
15 years ago
UPDATE 1-Peet's to buy Diedrich Coffee for $212 mln
Mon Nov 2, 2009 6:36pm EST
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* Says deal values Diedrich at $26/shr
* Says deal to enter single-cup coffee mkt
* Deal to help earnings after 2010
* Peet's shares fall 4 pct, Diedrich stock up 23 pct
Nov 2 (Reuters) - Gourmet coffee chain Peet's Coffee & Tea Inc (PEET.O) agreed to buy Diedrich Coffee Inc (DDRX.O) in a $212 million cash-and-stock deal, to enter the fast growing single-cup coffee market.
The deal values Diedrich at $26 a share, a premium of 28 percent over its Monday closing price of $20.36.
Diedrich, a wholesale coffee roaster and distributor, makes and sells K-Cup refills for Green Mountain Coffee Roasters Inc's (GMCR.O) single-cup Keurig brewer system through a licensing agreement.
Under the deal, Peet's will acquire Diedrich's portfolio of brands including Diedrich Coffee, Coffee People and the single-serve rights to the Gloria Jean's coffee brand.
Peet's said it will finance the acquisition through a combination of cash on hand and $140 million of debt financing.
The acquisition, expected to hurt earnings in 2010 and add to profit thereafter, is scheduled to close by the end of 2009.
Shares of Peet's were down 4 percent at $33.18, while those of Diedrich were up 23 percent at $25.14 in trading after the bell. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Anne Pallivathuckal)
HokieHead
16 years ago
OT:Hokie’s Next Gem…
Gave DDRX under $1 to $17 in 1.5 months
Next Micro Cap Play:
Cemtrex, Inc. (CTEI)
http://www.cemtrex.com/index.php
Chart:
http://stockcharts.com/h-sc/ui?s=CTEI&p=D&yr=0&mn=3&dy=0&id=p22207384185
Current Price: $0.51
Market Cap: $17.5 million
Shares O/S: 34.3 million
Shares Float: 8.9 million
Hokie's Comments:
Carbon Credits Legislation just passed. This stock is going to benefit big time starting this year. The stock is already showing it, up to mid 50 cent range from 5 cents in March. Multiple dollars ahead near-term imo.
A recent study released estimates that the world carbon market could be worth $3.1 trillion dollars by 2020. Cemtrex is doing Green DCV (energy efficiency) that generates carbon credits for its customers.
Cemtrex is now marketing a low-level Methane Catalytic Destruction Reactor (MCDR) unit for coal mines. A single full-scale Cemtrex MCDR unit can destroy approximately 5000 tons of low-level methane and generate 90,000 carbon credits per year along with production of pollution-free thermal energy. It will require 48,000 Cemtrex MCDR units to treat all the low-level methane from all US coal mines. "Based on approximate cost of $3 million per MCDR unit, it would take 3-4 years to pay back a typical single unit investment from the sale of carbon credits generated," said Mr. Arun Govil, CEO & President of Cemtrex. "Other units in the market cannot handle low-level methane concentrations and are more expensive, hence we offer a combination of technology and investment return that cannot be duplicated in today's market,"
Foster Wheeler awarded them a contract to design, supply and install an Insitu Carbon Monoxide (CO) analyzer system package. Demand for Carbon related consulting and technology is skyrocketing.
The stimulus bill signed by President Obama includes $14.5 billion for energy efficiency programs, $3.5 billion for renovation and energy efficiency improvements for the Department of Defense, $10 billion for federal loan guarantees on renewable energy systems, $8 billion for environmental remediation, $20 billion to extend renewable energy tax credits, and $11 billion to promote energy efficiency in government buildings and fleets.
Description:
Cemtrex Inc. is a worldwide market leader in manufacturing and selling the most advanced instruments for emission monitoring of particulate, opacity, mercury, sulfur dioxide, nitrogen oxides, etc. and filtration products for the industry. Cemtrex also markets Green DCV, an innovative energy efficiency solution for high-quality green building applications, through optimizing HVAC control systems. Cemtrex provides turnkey services for carbon creation projects from abatement of greenhouse gases pursuant to Kyoto protocol and assists project owners in selling of carbon credits globally. The Company's products are sold to power plants, refineries, chemical plants, cement plants and other industries, including federal and state governmental agencies.
Customers:
BP, GE, Corning, Citgo, Mitsubishi, Foster Wheeler, Dunkin Donuts, Txi, Siemens, Ensco
HokieHead
16 years ago
Updated Valuations 5/15/09
DDRX still undervalued when compared to peers:
Share Prices:
CBOU $5.50
GMCR $77.82
PEET $26.00
SBUX $12.94
DDRX $12.91
Shares Outstanding:
CBOU 19.4 million
GMCR 24.7 million
PEET 12.9 million
SBUX 734.6 million
DDRX 5.5 million
Market Caps:
CBOU $107 million
GMCR $1.9 billion
PEET $335 million
SBUX $9.6 billion
DDRX $71 million
Most Recent Quarter Revenue Growth (YOY):
CBOU lower than prior year quarter
GMCR 56.3%
PEET 12.5%
SBUX lower than prior year quarter
DDRX 72.3%
Forward Earnings:
CBOU $0.35
GMCR $2.13
PEET $1.14
SBUX $0.85
DDRX $1.50 (my estimate, see below)
Forward PE Ratio:
CBOU 16
GMCR 37
PEET 23
SBUX 15
DDRX 9
DDRX PPS at competitors forward PE:
CBOU $23
GMCR $53
PEET $33
SBUX $22
In conclusion, to value DDRX going forward, it should trade somewhere between $22 to $53 when compared to it's competition.
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My calculations for the $1.50 Fiscal 2009 earnings:
To earn $1.50 they need to make about $8.25 million. If I add on, say $8 million for Corporate expenses, the Wholesale Operation will need to produce $16.25 million in net income.
Wholesale net income margin was 17.5% of revenue last quarter. If they keep it at 17.5% (I think they will improve on that number with continued cost savings) in Fiscal 2009, they will have to do $93 million in revenue from July 2009 through June 2010 to hit the $16.25 million net income number.
I am guessing Wholesale revenue for Fiscal 2008 to finish up in the $70-$75 million range. $93 million would be in the bag imo then for Fiscal 2009. I think it could top $30 million a quarter by then, or $120 million now with sales at Walmart's.
$1.50 EPS x a modest 15 PE = $23 PPS
Earnings and revenues growing this fast it actually deserves a higher PE than 15 imo...