SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: James Clarke who wrote (17444)7/24/2003 2:36:03 PM
From: Bob Rudd  Read Replies (1) of 78525
 
BCC/OMX: I shorted BCC [very small position] on the news cause I it looked like a vertical integration, they paid a fat price considering debt and $2.7B OMX OBS OpLeases, and BCC's track record on acquisitions appears poor(http://www.washingtonpost.com/wp-dyn/articles/A62169-2003Jul15.html). Vertical acquisitions involving suppliers buying retailers are nearly always disasters [Shaw Carpet's purchase of several carpet retailers, resulting loss of HD biz, and sale of retailers at big loss not long after is one of many examples]. OTOH, this may be something different...a reconfiguration of the business away from manufacturing and into distribution. There's been some indication that OMX complements their existing distribution business with OMX being lacking commercial biz that ODP and Staples have...with BCC's distribution biz filling that gap. I'm still holding the short cause it's small, but I don't know the situation well enough to fight the market much longer. The market may be saying that selling the timberlands might uncover more value than the OMX deal destroys...but that's just a guess. Then again it could just be the rising tide for the recently outperforming cyclicals...may have to wait till that tide ebbs to tell who's swimming naked.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News