BUZZ-Premier Foods: hedge funds burnt as stock at near 3-yr lows

** The high-risk, high-reward game on Premier Foods (LSE: PFD.L - news) getting skewed to riskier side of things with stock down for 8th straight day on Tuesday to lows not seen since December 2011.

** Down 70 pct in last year after being hindered by downward pressure on UK supermarkets and a rights issue to help with debts.

** Stock well-liked amongst hedge funds: Paulson & Co top shareholder at 10 pct, with Warburg Pincus and TT International in top ten.

** Stock ranks very high on relative & intrinsic valuation metrics but scores very poorly on StarMine's balance sheet metrics, which suggests involvement of activists no coincidence.

** StarMine's IV model suggests shares could be worth 131p each - more than 4x current 31p price - while stock trades on just 3.4 times forward P/E. Chart on intrinsic valuation: http://link.reuters.com/fyc23w Chart on relative valuation: http://link.reuters.com/gyc23w

** As of June-end, quick ratio stood at 1.1 and company's pension scheme was under-funded by £536 mln, according to Thomson Reuters Eikon.

** Stock has no "sell" ratings.

** Credit Suisse (NYSE: CS - news) analysts say co bears all hallmarks of a private equity story in public ownership.

** Leverage on the balance sheet means a 1.5 pct growth in EBITDA/pa between 2015-18 leads to a 20 pct annual growth in implied equity value.

** But CS admits EBITDA growth remains elusive. (RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)