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Strategies & Market Trends : Fundamental Value Investing

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To: richardred who wrote (2035)	7/29/2012 12:04:53 AM
From: Spekulatius	2 Recommendations Read Replies (1) of 4719

Re CR- they have already 200M$ in insurance claims as an asset on their balance sheet, so assume that is already settled. On the debit side, they have 770M$ in non-current and 100M$ in current asbestos liabilities. ash outflowwas ~60M$/year. This is all from the latest 10-q, you can ignore this, but these numbers are fairly relevant for a 2.3B$ market cap company. FWIW, the reserve boost in 2007 was supplemented by another reserve boost of similar size 2011, which I suspect is not the last oneeither. My experience is that management does not talk much of these "non-operating" charges. I suspect their incentive systems don't account for these things, as they Re probably based on operating results, and who can blame them? But for shareholders, the cash outflows, which averages 60M$/year is real,they could double the dividend or do some share buybacks without it. My sense is that unless these issues are clearly accounted for by management and the analysts and reflected in the valuation, these stocks should be avoided.

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