Opportunity with WHX???
Here is a company that has had more assets than sense in the past. But over the past 2 years has managed to downplay their core business [making steel] and turn themselves into a holding company with some impressive profitable new acquisitions. . .and more on the way.
WHX is currently selling for half it's average price over the past few years and has never been lower since the strike at the steel mill 2 years ago. . . .and that was long BEFORE they bought the profitable Handy and Harman [with stellar financials] or Unicast. . . .or GIX [Global Industrial Technologies]. . .which they have made a tender offer for and are in the process of taking over.
Here is my question. Does press release to follow, say that WHX will soon be OUT of the steel mill biz? It sure implies it.
And if that is so, then what will the new value of WHX be, without the division that has sucked the profits dry? And what earnings could we expect to see from such company, minus the steel mills?
I smell a double here, should this occur.
Lots of other news reports from a variety of sources. . . most saying they can't envision who would buy whom. . . but I think it will be a merger/divorce I think WHX will announce a MERGER of "Wheeling-Pittsburgh Steel" and Wierton Steel. . . even though this amounts to a divorce of WHX from the steel division that started it all.
Wheeling Steel already keeps seperate books from WHX, and by cutting them loose, it frees WHX to show a nice balance sheet and perhaps positive earnings, for the first time in years.
The towns of Wheeling and Wierton are quite close to one another, so consolidating the management would be quite easy. Wierton Steel trades under the symbol WS.N and WHX Corp. [with Wheeling Steel] trades under WHX.N.
And if this weren't enough to raise some eyebrows. . . check this news release:
WASHINGTON, July 6 (Reuters) - A group led by New York money manager Mario Gabelli said Tuesday it raised its stake in WHX Corp., the steel company, to 8.46 percent, or 1,477,983 common shares, from 7.45 percent, or 1,300,611 shares.
The group's most recent transactions included a purchase of 75,300 shares on July 1 for about $6.7150 per share, according to a Securities and Exchange Commission filing.
Rande Is
- - - - - - - - - - - - - - - -
HERE is the news:
WHX Corporation in Preliminary Discussions with Weirton Steel Corporation
NEW YORK, July 9 /PRNewswire/ -- WHX Corporation (NYSE: WHX) announced today that it was in preliminary discussions with Weirton Steel Corporation (NYSE: WS) with regard to a joint venture or other business combination of its steel manufacturing operations. WHX emphasized that the talks were in the early stages and that further discussions are anticipated to be required to ascertain the viability of any joint venture or any other business combination. WHX also noted that if such a transaction is completed, WHX would be left with Unimast and Handy & Harman as its sole wholly-owned operating subsidiaries.
WHX is a holding company that has been structured to invest in and/or acquire a diverse group of businesses on a decentralized basis. WHX's primary businesses currently are Handy & Harman, a diversified manufacturing company whose strategic business segments encompass, among others, specialty wire and tubing, and precious metals plating, stamping and fabrication, and Wheeling-Pittsburgh Steel Corporation, a vertically integrated manufacturer of value-added and flat rolled steel products. WHX's other businesses include Unimast Incorporated, a leading manufacturer of steel framing and other products for commercial and residential construction and WHX Entertainment Corp., a co-owner of a racetrack and video lottery facility located in Wheeling, West Virginia.
This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934 and involve known and unknown risk, uncertainties and other factors. Such uncertainties and risks include, among others: certain risks associated with the closing and integration of joint ventures or other business combinations; competition; government regulation; and general economic and business conditions. Actual events, circumstances, effects and results may be materially different from the results, performance or achievements expressed or implied by the forward looking statements. Consequently, the forward looking statements contained herein should not be regarded as representations by WHX or any other person that the projected outcomes can or will be achieved.
SOURCE WHX Corporation
CO: WHX Corporation; Weirton Steel Corporation
ST: New York
- - - - - - - - - - - - - - |
