Hi T.D. - well, where should I start. CNC demise has begun when she bought Green Tree. I bought in at around 22 when she seems to find her footing and saw a bunch of insider buying [more later.] She was a bit more leveraged to my taste but I said, hey, look at those insider buyings!
Anyway, then Tom Lee & co has said to agree to put up a bunch of cash for a tranche of prefers. I looked at the term, it appeared to be kosher.
On top with this, CNC has managed to change her accounting method while lowering her earnings. However, the two debt rating houses have actually ratcheted up the debt ratings.
The downside during this time was that CNC got bashed by Forbes, Baron's etc etc along the way
The real bomb came when it was disclosed that the insider buyings came from loans with company's guarantee
Still, CNC rebounced with the financials when the pendulum swang back to the non tech.
Then, CNC came out with the PR about taking a charge in selling GT. The charge would bring 1999 earning down by a buck.
Well, I think CNC is a going concern with strong core business. As someone in this thread wonder, what happen to the employees who bought heavily into the co is another story. Of course, the co will take a hit as the guarantor
Ultimately, the prospect of CNC getting a $2.5B on GT sale is too much for people. So they throw in their towel
Just my take
best, Bosco |
