might have been fueled by the National Electrical Manufacturers Association report for May. This is seen as a leading economic indicator for North American industrial and construction activity. It showed its lowest reading since March of 2009. Just one of many factors to consider.
… have been driving the stock price of this very low volume income fund down for the past five weeks. However,the price of the underlying bonds has actually risen for the past 10 weeks! Therefore, the discount has widened from 7% to 11% and the yield has gone from 8.9% to 9.3% over the same time. Do the small investor sales present a buying opportunity?
Thank you. I am also a long term DE holder. I'm sorry if you misinterpreted my comments as "questioning you." My intention is never to be less than gracious, a quality which I find in short supply nowadays. I was only using the message board to help think through the implications, if any, of the reaction to the prior day's presentation, and in hope of generating some intelligent conversation which is sadly, usually missing on message boards. Every so often, however, you do mine a useful gem. Good luck with your investments. FWIW, my other long term holdings are EMR, PNR, NSC, DGX and AGXXF.
Some future catalysts: 1. Highway Bill, 2. East coast port growth with the larger container ships coming thru the Panama Canal, 3. The new one which I heard on the presentation was the securitization of on-book financing allowing the company to capture cash and secure lower interest rates. The CEO said this would be announced in coming weeks. Do you think this would be a catalyst for the stock price? Today may just be noise but the volume is huge! Do you pay attention to this factor in your investment decisions? All the best. H.
FWIW, I think the decline is based on fear of the company lowering estimates later in the year. As TEX described in the latest presentation,while TEX is doing what it can operationally (cost control, repurchase, debt reduction), it has no control over macro developments. As a long-term investor I'm willing to look past the current problems and, so, added a little today. However, I'm usually too early when trying to buck the momentum one way or another.
Do you have a link to the presentation? Why do you think that the owner is "randomly" liquidating rather than selling after his analysis. If you are correct, the large volume indicates that this is an institution. Also, if you are correct, this appears to be an opportunity to buy or add. Remember, TEX missed last quarter by $.16 but left the full year guidance unchanged. Why didn't they take the opportunity to lower 2105 guidance and, like most other companies which manipulate guidance, give themselves a better chance of a "beat?"
Sorry, I may not have enough experience to understand your post. What do mean by the $6 billion gap? Thank you.
Yes it is. The question is what multiple investors are willing to pay for this financially sound, good company.
This is an inane message board. Buy! Sell! As Clara Peller said, "Where's the beef?" How about some rationale to buy or sell. What will the revenues be over the next few years? What margins will they have? What will the balance sheet look like? What growth plans to they have? How about ANY metrics.