Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Ed Ajootian who wrote (54741)	11/14/1999 11:19:00 PM
From: Razorbak	Respond to of 95453

[Off-topic] MDR Meltdown Ed: Thanks. Don't feel guilty. However nonchalant you felt your question was, it was right on the mark. It convinced me to go through the analysis in detail for my own sake, if nothing else. Fortunately, I documented it as I went through it, so it was relatively easy to post on the thread. FWIW, I'm sure MDR's asbestos-related liabilities were only part of the reason for the recent meltdown. No doubt the fact that they missed the Street's earnings projections by a country mile caused a big chunk of the whack. I'm sure the unexpected poor performance from some of the JV companies had a little influence, too. As Slider so appropriately indicated, fundies don't like poor guidance, and a lot of the plunge was undoubtedly intentional punishment by the Street. Nevertheless, management's lack of sufficient quantification of the asbestos-related liabilities was probably the kicker, and that part, IMO, was clearly overblown. Obviously the stock sustained major technical damage over the last two days, so it may take a while to fully recover, but I fully suspect a DCB in the short term. BTW, there's nothing wrong with gambling, as long as you play with house odds. ;-) Best of luck to you. I'm hoping for another golden hook myself. <vbg> Razor

To: Ed Ajootian who wrote (54741)	11/14/1999 11:19:00 PM
From: Gary Burton	Read Replies (1) \| Respond to of 95453

fwiw--At Mar31, MDR Consolidated had a Bk Value of $794MM plus another $195MM in Monority Interest (JRay), for a total of $989MM.--JRay for its part had a Book Value of $687MM---leaving $300MM for the rest---of that,$15MM was equity in non-power affiliates, leaving $285MM----Power assets were 63% of the sum of Power+Industrial+Gov't----so 63% of $285MM=$180MM appears to be a reasonable estimate of the Book value of BW at Mar/99---as i said--fwiw