X axis : Stocks Price Correlation Coefficient Y axis : Quantity of stocks Sep-2016 1,000 Day Parameter 4,338 NYSE Stocks Price Analysis This stock mode of correlation coefficient is 0.7 In other words, the correlation coefficient of the other stocks
Harry Boxer has posted his Charts of the Day video on TEX at TheTechTrader site noting: Terex Corporation (TEX), a farm and construction machinery company, ran 2.57, or 7.77%, to 35.66, on 3.7 million shares traded on Tuesday. It broke out of a 3-4-month consolidation, and looks like it’s going to be testing 38 shortly, and my intermediate target is in the mid 40’s.
Does a neutral dividend payout ratio of 27.00% mean little action for TEX? It's an interesting question but anything could happen. A Pullback, a sudden uptick; it's all possible. Not sure how aw-esomeSTOCKS finds all these incredible trade ideas but im happy.
you really need to consider this one. PRHL looks ready to explode. Check out the news that was just released
So basically. TEX management looked a gift horse straight in the mouth and said... no thanks we prefer not to gamble on a winning horse. We'll stick to playing in the mud along with the other pigs. Morons. Without Zoomlion in the picture I see no reason to continue holding this. There are far greener pastures. I am out with a small 10% profit. You win some you lose some.
This transaction is transformative. Terex has 109 million shares outstanding not 120 million as I used in my earlier post. There will be tax consequences to the deal I'm sure but it seems Terex will be able to retire close to half of its debt, nearly double the dividend, shed a money losing division and still have the equity interest in Kronecranes. It seems too good to be true and that the original deal made by Defeo was a total a$$f$$ for Terex shareholders. Thanks Zoomlion! This stock is a buy in my opinion.
Define 'fully financed". Zoom offered 31 cash representing a 50%+ premium to the pre-offer price of TEX. TEX hmmed and hawed then said we'll take 32.50+ but we don't trust you so we'll only do this if you prove you have the cash to do the deal. Zoom said stop being so greedy we're already proposing 50% premium so it's 31 and we'll show you the money. TEX said nope, but if you are willing to buy us ex-MHPS at the 32.50 valued equivalent we'll consider that and trust you to come up with the smaller amount of cash. Zoom said #$%$ you and your monkey gaimes you dikks. Cue the lawyers shortly to sue TEX for not doing their fiduciary duty to their shareholders...
@Unfortunately, after many months of discussions, Zoomlion was unable to provide a fully financed, binding proposal for the purchase of Terex with or without MHPS.
Why Terex will blow its load on bad investments. Terex could be a decent buy if their management thought correctly. While, I am a pretty debt adverse person. I believe Terex is capable of returns when using correct leverage. Second they just refinanced their debt at very attractive rates and their average interest expense is around 5.2%. Furthermore some of its bonds trade at a premium therefore they will incur a loss.
Think of it like this Terex has $1.4 B or so. Their discount rate is around 10%. If they were to buyback $1.4 B of stock at $20 that is 70 M shares. They currently have 110 M shares. So a buyback of 70 M shares would bring it down to 40 M and they would earn about $3.57 a share on a PPS of $20 or 5.6 times earnings.
Instead they will keep Kone shares which earn 95 cents a share after it dilutes itself with MHPS on about $470 euro M or about 4%. And they will buyback debt with after tax cost of capital at 3.6% 5.2% * 70% and increase earnings by about $26.5 M or 26 cents a share.
I believe the MHPS sale should be tax free given that they should be in a loss on their investment. Given this, this would be the perfect time to buyback Terex stock.
Management would be smart to do this and if they do Terex stock is worth $40. Assuming they don't get the opportunistic prices I want and have to buyback closer to $25 then the stock is worth closer to $27. If they choose back to buyback debt and keep an awful Kone investment well then the stock is worth close to $20.
This is the time where Terex can make a good investment. But I don't think they will
Simple logic on why Zoom Doesn't want. Sorry for the new thread but Yahoo as usual is deleting posts. Anyone know of better MB's?
Here is my simple logic on why the deal will collapse
See you misread the Terex press release. Let's think of a hypothetical scenario of you and your bride are planning your honeymoon . And the deal is that you will either go to Italy France, Belgium.
However during the trip planning you decide to sell your car for $10,000. But the option in selling the car says you can cancel the sale of selling your car for $10,000 if your bride wants to keep the car within the next 15 days.
This implies you sold the car without discussions with your bride and that your hoping this will make her happy and talk to you again. You wouldn't have a blackout clause for the car sale if you were actually already talking to your wife. Ergo if Zoom wanted MHPS they would already know. If they didn't they would already know,
From this we can deduce both parties are not currently talking and this is Terex's effort to make itself as attractive as possible to get a deal done.
But their MHPS offer only goes until May 31. Therefore I am 100% sure the deal will collapse by then"
The prophet speaks. From Feb 17, 2016 from your prophet James
"Out at $22
Your god James S has exited. Zoomlion didn't provide any new news today. I communicated 1 month ago that they had the finances to buy Terex with their cash hoard. I said the Kone CEO was dumb for saying they didn't. The only new news is Zoom posted on their website what Terex had on theirs. All the difficulties of the transaction still exist.
Now Zoomlion offer well now we need that even more to go through because TEX just laid an egg on their earnings. Basically he decides that everything DeFeo ever told us was a lie and he is resetting Terex. Which may be good but their projections are a lot lower than mine.
Is Terex really much more than a 10 PE company given their constant awful results and risk in this low market?
Well no. Maybe in a higher market it is but not right now.
Anyways I broke even over the year and put my money in COF.
Once the deal clarifies itself cuz I expect Zoom offer to not go through. I would be interested in seeing how Kone TEX looks and then consider investing in the future.
I'm not happy about their muted guidance and the continued sturggles of MHPS and constructions. Those 2 businesses have performed so badly. Less"
Notice how I said the transaction would fall.
Anyone think TEX Is a good buy right now?. Down 17% on the merger falling apart.