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Kinder Morgan Energy Partners, Message Board

NORCROSS2 3 posts  |  Last Activity: Mar 2, 2015 10:47 AM Member since: May 8, 2012
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  • norcross2 norcross2 Feb 24, 2015 5:08 PM Flag

    This action reminds me of the summer of 2000 when Fairfield Communities was earning a solid $20m/yr and was valued at $250million. Future value was assured. Shortsellers and the mm's forced it down to $125m valuation. The board was forced to put the company up for sale. Carnival Cruise's bid failed when their stock was nearly cut in half. Mr. Silverman owner of most of Cendant put in a bid of twice the current market value pending his evaluation of the bookkeeping. He then voluntarily upped the bid by $50m because he said it was well worth it and it would make him more than rich. He already owned Avis, Travelocity, travel co. franchises, the Century 21 Realty franchise, and a whole host of hotel franchises like Super8, Days Inn, Wyndham, Ramada Inn, and many more like Microtel. Cendant then split into 4 separate public companies: Avis/Budget, the travel companies and website, Realogy, and the Hotel and Resort operations. Wyndham became the umbrella name for the hotels and Fairfield took the Wyndham Vacation Resorts as its brand name and it also had RCIexchange system. The hotels and the old Fairfield vacation resorts became the cash cow it was destined to be. Earnings in the hotel group including the vacation resorts zoomed to $500m by 2008. 2009 earnings were projected to fall to $300m and so the Wyndham stock valulation fell to $600m @ $3/sh. You could buy it for twice the projected earnings. This was an even better steal than Silverman's. Wyndham is over $90 today even though earnings have only recently regained the $500m mark. I think Himax is in a similar situation. Valuation is compelling and should be bought by a billionaire for the gross margin alone.

  • Reply to

    RSI under 20 , Geez

    by utopia_261 Feb 24, 2015 3:12 PM
    norcross2 norcross2 Feb 24, 2015 5:28 PM Flag

    shortsellers can manipulate a company stock as long as their brokers are willing to extend their margin. Then somebody who is smart and rich will scoop up the whole company on the cheap. Or it would be a great buy for somebody like IBM. IBm needs to add some nice chunk change of gross margin to its portfolio, but their CEO I think is scared to be so progressive. It would help to get Himax away from Taiwanese ownership.

  • norcross2 norcross2 Mar 2, 2015 10:47 AM Flag

    Yes, Norm, you are right. It is Qualcomm that got replaced in one of Samsung's phones. I invest in all of these stocks and so got confused. Thanks for the reply.

KMP

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