Here is my rough estimate of SVU liquidation value. I used values from their balance sheet data on Dec 04, 2010.
3,987,000,000 current assets
3,395,000,000 50% of property, etc
574,000,000 Other assets
6,901,000,000 Long term debt
2,268,000,000 Other liabilities
Plant Property Equipment at 50%
-1,213,000,000/212 M shares =
-$5.72 per share
Plant Property Equipment at 75%
3987+5010+574= 9571 M
9571M-9169M = 402 M
402M /212M = $1.89 per share
IF you value SVUs plant, property and equipement at 50% the liquidation value is -$5.72 per share.
How many bankruptcy auctions do you see 75% of full value price being paid?
50% may even be high.
I gave intangilbe assets a value of zero.
Even if you assume full value of intangible assets and 50% of plant/property/equip, you will probably end up with $2 per share.
If SVU drops to $3 per share, I might be a buyer of the stock as a speculation play.
I don't disagree with what you said.
I wanted to come up with a rough liquidation value. Someone offhandedly said SVU was easily worth more than $7 in liquidation.
I asked them to provide calculations or references to their claim.
Since they failed to do that, I came up with my own,
Schmucko, How much money did you lose today?
There is no fire sale at well below replacement cost at SVU.
The company has HUGE cash flow that far exceeds debt payments.
They have so much excess cash flow that they are paying a dividend to the shareholders.
SVU is a buyout candidate at well above current share price.
Well someone said that SVU was worth at least $7 in liquidation.
That started the effort.
I guess we have a difference of opinion as to the worth of SVUs, or any other company's value of its property, equipment, especially in this market.
Often I hear how WMT or TGT would love to have SHLD or JCPs real estate for its stores.
Every time I have read about WMT opening a new superstore, they bought raw land. I have even seen WMT sell its own store and build a superstore a mile away on undeveloped land.
Nicely said. As I mentioned in earlier posts, in brief, the parts are worth more than the whole. The question should be which are the deteriorating parts that needs shedding, dragging the whole because FCF / Mkt cap was 1-2x which means something within those numbers are profitable centers.
When I first placed my purchase @7.46, I was thinking the supply chain alone was theoretically worth north of $1.5 bill, while the remaining parts is free which doesn't make a whole lot of sense for the common to be sold at $1.5 bill at the time.
I say this with due respect but, You have to be a paid basher-your tacticts come right out of their handbook. I commend you on the fact that I have seen few bashers go to the lengths that you do
Your analysis is fraught with errors and much to simplified. You apparently have not had much dealing with corporate accounting or simply want to bend the figures to meet your needs.