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
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
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
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
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