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Company: Talbots (TLB)
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75%
agree
8 votes

  Strong cash flow being used to pay down debt

Talbots generated strong free cash flow of about $140 million in the 2008 fiscal year (ended in February). It used most of that to pay down roughly $125 million in debt, leaving the company with just $389 million in total debt. I don't think some of its cash flows (such as inventory reductions) are sustainable, but I believe that $50 million-$60 million in normalized free cash flow is a reasonable assumption. Relative to Talbots' $665 million market cap, that's quite a healthy yield.[1]

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50%
agree
4 votes

  New Marketing officer

New Marketing officer

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50%
agree
4 votes

  High confidence from lenders in a tough credit market

High confidence from lenders in a tough credit market

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