I am long SDRL and agree with your post.
SDRL is a stock with a lot of beta .....as a long term hold, be patient as the stock
price can drip appreciably almost any time.
I would never chase SDRL. I wait for the sell offs that come periodically to provide
extra safety for my position.
Missing a dividend or two is OK to me, in exchange for a value price for additional
SDRL shares. I would not buy with 38 handle.
Then go buy PF
HIllshire, J Dean & Sara Lee are not growing.......go look at the many different meat brands in the
meat depart and the Deli ...plus generics .......in your grocery store
HSH is sold at $ 63.....its history
HSH major shareholders will fire the entire HSH Board of Directors and vote in a new Board
within 15 minutes if the major shareholders think that HSH mgmt is serious about the PF deal.
The PF deal noise is some weird tactic by a crazy HSH CEO who knows he just screwed himself
out of his own job ...!
Who cares if TSN shareholders sues ? .........HSH shareholders should sell their shares TODAY
and enjoy their windfall of money. HSH is not worth $ 40 but they are getting $ 62 right now ..!
1) "done" tomorrow
2) they won't care ...too many regional & generic meat processors
3) no problem.........except for the TSN CEO !
Unbelievable great luck for HSH shareholders that TSN CEO is so inept ...!
Congratulation on your stock take-out profits.....hope they are in the bank now.
Current BOD are consolidating their power...?
By giving away seats on their 6 man board ?
A slap in the face to the activists who are looking for seats........?
Did you ever hear Koury mention he was thinking of adding seats to his BOD ...?
Relational & other large investors forced Koury's hand regarding Anderson...!
Relational also forced Koury to split his energy stuff away from aero interiors.
Koury wanted all of BEAV plus he wanted to invest in his energy sideshow.
Now Koury gets his sideshow then retires in 10 months.
I have read many of your posts, Bell, regarding the recent events involving
BEAV. Your present a balanced and usually well thought out message.
However your post above seems outside of your normal analytical assessment
and enters into biased revision of how events occurred leading up to the news
released today.....you will do yourself a service, as an investor, by returning to
your prior perspective.
I look forward to reading additional balanced and objective posts from you
on BEAV as it prepares for into spin off.
The current CEO played this thing into a mess and large activists
came in & made the best long term move for all investors.
In the process Relational & others effectively removed the CEO.
With new mgmt, the aero interiors can easily best the 23 % margins
posted by Koury's CMS/energy unit
Koury "blasted shareholders value" by misplaying BEAV strategic
plans. Back to $ 90, then the new changes will be valued by
the market as a better plan for all. BEAV will see $ 105 pre-split.
Francesca's, Chico's, Kohl's ..... all TJX competitors all not having a good time of it.
TJX still looks "best of breed", even in these tough times for non-luxury retailers
Just wish TJX it would provide me with one last value entry in the sub $ 54 range .....
I too am long SLRC and have not enjoyed the last year, as an investor with Gross ......
However Gross owns a large % of SLRC stock and I still feel his stake in SLRC equity
has a larger impact on his mgmt behavior within SLRC than the fee income he gains
by running a weak performing BDC whose stock price can not move higher ......
I am looking forward to see a quarter of performance without the high levels of prepayments
that SLRC has experienced in the past quarters .....if this occurs and NII does not make
progress in an upward fashion, than I will worry more.
I agree this news does not increase stock value in the near term. I am more optimistic
than you maybe, that the new split will provide an opportunity for shareholders to profit
in the mid term.
I also agree with your idea that a future buyer will materialize to buy one of the new
firms that were born today. I think at a price better than carving out the operations
from the existing combined structure.
I feel that later in this year the market will see the value of 2 separate businesses in
early 2015 & I do belief the stock will go higher in 2014 based on that calculation.
Either way, now all BEAV shareholders will have the opportunity to invest
their BEAV as they see fit. With Koury or with Anderson or both.
You will now have the opportunity to invest as you please .......
It is too early to say which new firm will be a target for future buyers, IMO
But now you will have the opportunity to profit from each entity as you see fit.
BEAV gets a new EVP from Honeywell & will split into 2 firms.
One, the traditional BEAV aero interiors business.
The other, the CMS and energy assets..
Koury will get to run his CMS + energy firm while Relational, Oz Mgmt and others bring in
David Anderson to get the core aero interiors business back on a growth trajectory.
Looks to be good for current BEAV investors as they will get shares of both firms and will
be able to decide for for themselves, not the Koury Bros, which business each investors wants
to participate in ...... or both.
This should unlock growth and stock price growth once these decisions are put into action.
Near term BEAV might see rocky trading though, until the deal appears done.
You now own a $ 7.7 billion "black hole" ...... HSH
.....no time or cash flow to do anything but try to hire folks to show a profit
Tyson should have fired their CEO in 2013
The Tyson CEO is very weak. PPC forced him to overpay for a group of non-growing brands.
If PPC bought HSH, then TSN would be "out of business" from an investment standpoint in
about 12 months. As it stands now, TSN will live on but only as an over-leveraged second tier
Its very telling that the current Tyson CEO did not see the current events taking shape and
was backed into this unenviable corner by a competitor...... where was the Tyson Board of
Directors when this CEO was losing contact with reality.....?
I feel sorry for current Tyson shareholders ........ only real option now is a private equity
buyout, followed by a "tear apart" and sale in the next 5 to 10 years......
....Tyson is going to $ 30 by year end, IMO
Basically the Tyson CEO said nothing of value that would indicate to investors that his mgmt
had a real plan for HSH. Mostly double-talk, like so many other fringe managers.
After watching this CEO I am more certain he got caught in a position where Tyson
had to overpay or be made irrelevant in the marketplace by JBS/PPC. This indicates to me
that the Tyson CEO should be replaced.......he put his firm in a position to be ruined by
SLRC, yes, and wish Gross would stop buying back shares so that stock would drift lower
so I could realize a better yield with additional purchases. I have not added in over 5 quarters.
I would be more interested if SLRC traded at least under $ 20.25 & $ 20.00 better.
also TCAP and FULL
By the way, Beef, any comments on BGS ? Is BGS at a "short initiation" level ..?
LMT stock price, at current valuation, probably depends upon the overall market's
general direction ......
I think that general direction will be steadily higher.