WAB should keep the good news to
Every time good news is publicized, the stock
Market is up over 1% today. WAB announces record quarter
and stock drops almost 6%.
When a law suit
against WAB was publicized a month ago the stock went
Our FRB chairman is turning into a meddling,
self-appointed stock market policeman. He has now raised the
cost of money more than 15% this year, supposedly to
keep in check 2% inflation in the cost of everything
else. Heard from the boardroom: "Any signs of rising
inflation? Not really... Productivity up? Strongly up.
Market up? Sharply, sir. Raise 'em again."
GE's chairman, Jack Welch, has stated GE is
committed to the rail business and the rail aftermarket.
WAB/MPO would make a very nice aquisition. The lack of
liquidity in the stock make it very hard for shareholders
to profit from the good performance these two
companies have delivered. GE has a highly inflated currency
(it's own stock), hopefully WAB'S management will
position the new company to be sold. An aquisition by GE
would be a win/win. WAB shareholders would win and GE
shareholders would be aquiring a company with some real
WAB management has done a very classy thing in
buying both WAB and MPO shares for their own personal
If they have faith in a WAB/MPO combination, I do
Some of the thinking on this board is so short-term,
it's ridiculous. Please take an unemotional look at
the benefits for the long-term that the merger can
bring instead of worrying about a couple of bucks in
You never get to the top thinking
With WABCO currently down to 16-5/8 and MPO at
10-13/16, the price ratio is now .65. The arbiters' short
sales of WAB has locked in a heavy demand, and it will
be triggered when the stockholders reject this deal.
Just watch them lose their lousy shirts scrambling to
cover at 20 when it happens - sweet justice.
NO! MPO reported 19 cents for the 3rd qtr and
does NOT and will not have sufficient earnings to be
worth .66 shares of WABCO. $1.12 is now optimistic for
their year, and next year stands to be tougher yet.
Twice now MPO deals have been structured that clearly
are NOT FAIR to WAB stockholders. We've grossly
overpaid for enough companies, and MPO has dragged us down
long enough! Let them sink on their own.
The low P/E's are general throughout the
industrial/manufacturing sector. I can cite many P/E's of good companies
now below 8 -- including USG,ACK,CDD,PCP,ST,BELFA.
They are bargains, especially in December when the
tax-selling is over. The WAB/MPO combination will get us a
better stock price if we are just a little patient
For the 13th consecutive quarter, WAB posts a
solid year-to-year earnings increase, yet again beating
street consensus, and the price naturally drops. I guess
it is so consistent that it's taken for granted, but
what would happen to this company's stock if, God
forbid, they ever miss one? I guess MPO is one example.
WABCO's performance is relentlessly excellent, the future
is bright, and the stockholders are rewarded with a
P/E of just over 7? Why bother?