Dec. 2 at 1:50 PM
$HLF excellent pitch by CFO at this morning’s B of A conference about why strategy to use excess cash to pay down debt can benefit stock.
“We have a certain enterprise value today. Right. It's it's a forex our EBITDA. It's incredibly low okay. One way to to create equity value is to take some of that enterprise value and transfer it from debt to equity holders.
So just by paying off the debt,
$1 billion in debt. We add
$1 billion to our equity holders, right. So that from where we were, where the stock was a month ago, that doubles the stock, right? So there's value to the equity holders by paying down the debt. So that's one way to do it. Second is we just have to perform right. I think if we perform. Our multiple will grow, right? I mean, if you look historically of where our enterprise value multiple is at an all time low, recently, right. Yet our business is stable. It's starting to grow.”
It’s the steady train to value creation. Unappealing to momo/penny flipper crowd. I like it.
