possible...but at what price? It's a easier way out or for Carl to make immediate money.if that to happen companies like this reduce debt..no new facilities open etc cuts,cuts....acquiring firms want no fat...look for those signs
Carl was going to buy into a secondary offering in December. The secondary was pulled. Then the company files a S3 a few weeks ago. I think they're negotiating a sale of the aftermarket business. Combine it with another supplier like smp. Four of the big shareholders own both companies.
Sentiment: Strong Buy
Carl Icahn bought FDML for good reasons. He will not hold onto his shares unless he knows that FDML is going to go back higher than the $10 to $14 range he paid for the shares he acquired. This adds more confidence as the execution of the cost cutting and restructuring is moving along at Federal Mogul. Down the road we may get back to the $25 to $30 range. This ofcourse depends on the management performance. For me I think this is the time to get in FDML.
According to the STATISTICAL information on Yahoo, they have $4.72 per share in cash, a book value of $7.33 and a current ratio of 2.11 to 1 . Additionally, the statistical information indicates that the market value of the company is about $3 billion but the current market cap is only $683 million.
Carl Icahn bought most of this company at prices ranging from $10 to $14 a share. Has Carl lost his touch? I don't think so. I think he is just focusing on other areas right now. He'll be back to FDML BUT WHEN???