As a follow up to message #1317; I expect to read
Wednesday's WALL STREET JOURNAL that a shareholder asked a
number of tough questions.
We voted you as our
point man and good luck on your mission.
forget we want the scoop.
It's going to go up. From today at $24+- to at
the least $30 by the end of the year. That will be
25% in 8 months. The way the market is acting now
there are alot of people who will take that. Plus it's
so much safer than alot of other stocks. The upside
is so much larger than the down....Of course this is
just my opinion. Everyone who is selling here, I'm
buying all I can, I hope it stays here for a little
while longer so I can get some more of this cheap
stock........I need to get just a little more so that when it
pops and CC sells(opp's restructures) all the domestic
production, I will be able to tee it up 7 days a week!
buy at 22 range, Raytheon 18 -17 range, again
I'am only going for a fews upward points and then
sell, and wait again to repeat the cycle.
MDR, it has one negative, is with their B&W company,
sales close to 2 billion, very little debt and assets
of 2 billion, voluntary filed for Bankruptcy (to
settle a procedure in asbestos lawsuits claims), during
the past 17 years B&W has settle 320,000 claims using
1.3 billion dollars insurance+payment (Never been in
court), now there is 42,000 cases and 1 billion insurance
money left. The asbestos lawyers want the rest of the
insurance money plus more, B&W did not create asbestos, the
asbestos was used as government spec's to build boilers
used by the Navy ships and in Power Plants, McDermott
(MDR) on 04/17/2000 won a Temporary Restraining Order
to sheild their assets in their other companies, at
the current price of $9.00 does not reflex the value
of the rest of the company.
This stock is
undervalue you can go to MDR Web page www.mcdermott.com to
get more information.
J Ray McDermott offshore
oil construction service is going to lift this stock,
J Ray in 2001 will bring in revenue of 1,900,000
million, as oil companies increase production.
has a backlog of billions in upgrades to power plants
to clean their air pollution, now being mandated by
US courts, also MDR is in the Fuel Cell bussiness,
and nuclear fuel for the Navy.
Promise: that you will ask
the tough questions and report. Don't let them cut
you off. Stand up for us little
Incidentally, I voted my proxy against management: all proxy
good strategy. I have had success with Tidewater
also (TDW). I think I'll take a shot at MRO next
week....I think it would be safe anywhere around $23 -
$23.50...what do you think?
Also, what are your target
buy/sell points for Conoco and Raytheon?
so attractive about MDR (I made the mistake buying
FGH on the way down, and I once read a post from
someone who was switching from FGH to MDR.....maybe I
should as well).
their performance. Here we are in the first Q of
2000, with the oil business in good shape, a more than
doubling of the net profit per share from 38 to 81 cents,
with the knowledge that the street was calling for 66
cents per share, and MRO comes in 2 cents low. Hell
give any good accountant 15 cents per share to pay for
"special items" and I would bet that he could find at
least 2 more pennies per share to meet the street's
forecast. Other oil companies usually meet or exceed the
If Usher,et.al. cannot make
sensible financial decisions the whole lot should go, or
better yet cut MRO loose. I know these people and I'm
heading to Birmingham for answers.
Yes MRO shareholders have voting rights...MRO
shareholders have approximatley 60% voting rights for the USX
board. Don't have the exact figures in front of me. But
the fact is that the situation is set up such that
MRO shareholders couldn't push a buyout out offer
without USX BOD agreeing. That is their power. You have a
staggered board, split voting power between MRO and X, and
a killer poison pill management protection program.
Without USX Corp agreeing to a buyout, it doesn't matter
if 100% of the MRO shareholders voted for it. MRO
shareholders only have power in that they can effect the BOD
of USX. But MRO has institutions that will only vote
as USX recomends. So this avenue is
A LBO guy could make an all cash offer to USX for
the total company (MRO&X) and get around the poison
pill. But reality says this will never happen. USX must
decide to make shareholder value their primary goal
before anything happens. Pressure can be applied but
until USHER reaches retirement age he has no motivation
to accept a buyout offer.
But there is always
hope. Maybe there are member of the board who are
becoming embarrassed with this situation. Maybe they could
introduce measures to change the situation. There is always
I thought this was the case. That is most
unfortunate. In short, management is not accountable to
shareholders. What is the proxy protocol ? Do MRO shareholders
have any voting rights, if so to what extent ? Thanks