You must be drunk on Kool Aid. Crashing oil prices were never a justification for the spin-off. FACT: The market hit record after record while BEAV languished.
P.S. I´m not mad at you -- who, reportedly, has no skin in this game -- I have been making money in BEAV (again, finally) for the last 2 months -- since around $55.
BS. The stock is about where it was before the spin-off was announced and has spent 9 months recovering from the related uncertainty and expense. Time is money... the spin-off was pretty much a waste of time and money. The one really significant long-term benefit was unforseen and not part of the spin-off rationale: Oil prices are down as are valuations for oil services businesses. The new BEAV is not hampered by this problem. KLXI, of course, is. So, to that extant, thank you, Relational... lucky call.
From today´s press release: "2015 earnings per share are expected to be approximately $3.00 per diluted share or approximately 20 percent higher than 2014 adjusted earnings per share."
The new CEO put a lot of one-time junk into last Q and wants to start the new year with a relatively clean slate. They are already planning to de-leverage, boost the divvy and buy-back shares. The business can grow per share earnings at 20% for the next few years. With a PE of 14, the stock looks good. Barring a maket melt-down, I think it´s up from here - especially in the second half as the new CEO proves he can make forecast, R & D declines, and new business starts to roll in from airlines flush with cash due to lower fuel costs.
BS. The spinoff was one of the most complicated, goofiest, worthless, activist investor initiatives I´ve ever witnessed. It has LOST MONEY for anyone who held BEAV shares in May of last year. You see #$%$ and call it steak. Bon appetit.
Blah, Blah. I sold at 95, bought back at 75, sold that on a break even basis and am now waiting for the dust to settle. If you think the stock action has been in relation to mis-management and "mis-allocation" rather than the oil price slide and the expenses of the spin-off, then you are the rookie.
Try "uma quadrilha do ladroes e canalhas", a gang of thieves and scoundrels. The term "quadrilha" is especially appropriate because political and financial corruption in Brazil is institutionalized much like mafia- style organized crime. This is not gang activity, it´s muchmore sophisticated. Money flows up and out. Privileges - especially immunity from prosecution - flows down.
My BEAV position is DEEP in the black - just less so since Relational Advisors, their allies and apologists showed up. Amusing to hear you complain about the money Khury stole (as opposed to how much he made for us shareholders) when you don´t even have skin in the game.
My last post to you. No skin, no cred.
"...would have crashed sooner or later." What a ridiculously speculative, entirely unfounded, thing to say in light of the FACT the it DID crash following details of the planned split. Surely you can do better than that.
Koury built a hugely succesful business without strategic advice from a bunch of hedge-fund fools. There is not one shred of evidence that he "would have ruined BOTH businesses in 2 to 3 years." Point of fact: The stock was $10 higer BEFORE the forced split. So much for creating value. I really don´t get your argument, Jack. The facts are not with you. I think you are an apologist and probably a PR hack for Relational Investors. Ra Ra Ra, there is no credibility in cheering the wrong side of the trade.
You guys just don´t get it. The rich and powerful in Brazil don´t care about getting caught because they never pay the price. They even have a word for this phenomenon: "impunidade", impunity. If you think that this is somehow limited to this incident or to Petrobras, think again. Brazil is a kleptocracy where anyone who can, takes what he can.