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Tenneco Inc. Message Board

  • ChrisVilburn ChrisVilburn Jan 4, 2000 3:33 PM Flag

    Market - Out of Growth and into Value

    Today's market is badly down, but those long in
    TEN are sitting at over +13% as of this post today!
    What gives? . . . It looks like another case of
    investors fleeing from overpriced momentum stocks and
    shoveling their money into safer value stocks like TEN.
    Thus, bad news in the market can be good news for TEN.
    Admittedly, my portfolio contains several momentum stock
    which are bleeding badly today, but I am cushioned by
    my position in TEN. In fact, TEN is up 55% since I
    bought it at 7.25 and it is one of my better performing
    positions. It's nice on a day like today to be a believer in
    value stocks!


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    • Probably works if you build your company around
      it. Problem comes when you attempt to adapt an
      existing company to work like SAP requires you to. There's
      not enough stockholders of SAP out there to justify
      its adoption on the basis of an IT department wanting
      to buy a system and jack up the SAP stock price.
      Like a JIT system, it probably uncovers existing
      weaknesses in a company, which from what I can tell is one
      of the reasons TEN remains a value stock -- the
      persistance of existing weaknesses. Nice endorsement from
      Fortune -- NOT.

    • When Tom Ryan, former CFO, took SAP request to
      the board, it was to have cost $54 mill vs. the $250
      + to date. Talk about a cash drain, no wonder TA
      earnings are depressed.

      SAP was instrumental in
      the bankruptcy of Foxmoor drug and just about brought
      Owens Corning to its knees becasue they couldn't ship,
      bill or build product using SAP. WSJ was prominent in
      its criticism of SAP about 3 years ago.

    • You are correct, Hersey's has lost 250 million
      because they couldn't ship their product. The rumor mill
      is that SAP is on HOLD for the Monroe Shock Division
      and is on HOLD Pending for the Walker Exhaust
      Division while the Information Technology Department tries
      to cost justify what they have spent versus what SAP
      was suppose to save the company. Let's face it,
      spending over $300 million dollars, this includes the SAP
      implementation at Tenneco Business Services,on some computer
      software is not going to save this company enough to
      justify itself. They are having problems with EDI and
      manufacturing. The other modules are very cumbersome for
      entering data and they can't even afford to keep archived
      data for viewing on the system. They don't even have
      any good reports coming from that system. The reports
      they are getting are generated on the Mainframe from
      file transfers the I.T department sends over every
      night. Hopefully the I.T. department will quit wasting
      company money and let us get back to basics.

    • I am an employee; our plant is continuing
      preparation for full SAP implementation. Just responding
      because this is the second post I have seen that SAP is
      being dropped.

      As they say in the show, "Just
      the facts, ma'am." Where/who did the announcement SAP
      is being dropped come from?

    • My dad is in IS&S for a large automaker but came
      into that recently from a finance and operations
      background. His company has flirted with SAP but he says that
      it's a LOT easier to build a corporate culture around
      SAP than adapt an existing company to the system.
      From the posts here, Tenneco doesn't sound like it
      suffers from an overly adaptble management, so dumping
      SAP may be the best thing.

      I think you meant
      to say that Hershey's has lost almost a quarter
      BILLION beacuse they CAN'T ship their product. Was a big
      WSJ story on that a few months ago, about them
      missing the Halloween rush and losing shelf space at
      convenience stores to other competitors who can make their
      ship dates.

    • what I cant understand is why the
      Feds let Mead and his buddies completely wreck Tenneco and didnt say a word. Talk about the big one, I think we all contributed

    • Explain "hard row too hoe" as best you can. Is it
      because of the new plant manager?

      Roger needs to
      get out on the floor and talk to the people. The
      people are the ones that can make or break him. We all
      thought that Heuy Green (last plant manager) was going to
      make a change to the better. All he thought about was
      golf. He bought four memberships to the new golf course
      in Hartwell with plant funds. Estimated cost of
      membership is $3,000 for each with $110 per month X four for
      club dues. Fridays were offsite meetings at the club.
      We all know now why the moral of the people went
      down. Huey and his buddies were riding on a free ticket
      for a while with all the golf and fringe benefits of
      this memebership.

      We are all hoping that Roger
      will be a people person that he has said he was. He
      says he has an open door policy but some have already
      said that it's his way or no way. Time will tell.

    • all car parts will be made in china & mexico
      already ten has 5 or 6 plants in mexico & and i think 1
      or 2 in china. In china they work for a buck a day.
      Face it just m.s.d.c. In us. And business to sale the
      parts. Buy stock internet .

    • Entrenched management is sometimes good and oft
      times bad. Most shareholders could care less about who
      is on the Board or who manages a company as long as
      a company's stock performs. If a company's stk has
      performed poorly, as is the case with Tenneco, vulture
      investors and other acquisition minded predators start
      circling the company. If they see value, the eventual
      outcome is either negotiated change, proxy battles to
      effect change or an outright takeover. Stocks that offer
      genuine value aren't unfairly priced for long. The
      difficulty value investors have in a situation like Tenneco,
      is ascertaining whether this is a value play or
      whether it is a basket case. I'm betting on the former.

    • There is one problem with you theory about the
      management being replaced. Management also runs the Board of
      Directors, and I don't think they are going to kick
      themselves out. This is why Tenneco Automotive was rated "10
      Worst Boards of Directors" for 1999, by Fortune

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