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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Tapcon who wrote (9270)	12/11/1999 1:27:00 PM
From: jeffbas	Read Replies (1) \| Respond to of 78567

Thanks for bringing this up. I hated the price paid and promptly sold at 17. The market evidently agrees: quote.yahoo.com However, it is probably worth another look, especially if it gets to my $10 and under threshold of interest. My offhand look indicates that since Case was not making money interest costs on the purchase price will wipe out NH earnings, with a risk that the dividend gets cut. In other words, it appears to be a much worse investment than it was when it was last here.

To: Tapcon who wrote (9270)	12/11/1999 11:33:00 PM
From: James Clarke	Read Replies (1) \| Respond to of 78567

If you want to play the ag cycle, buy Deere. If you want more leverage, buy Agco or IGL. IGL may be the most attractive of the three. CNH is alot more complicated than it looks, but think about this. Case traded as low as 18. New Holland traded as low as 9. These are the old New Holland shares, and New Holland bought Case for 55 in cash. Put two and two together and you should conclude that the old bottom does not apply. There has been no new equity, so the company now sits on over $5 billion of debt, with plans to issue $2 billion in new equity. If they do that at anywhere close to this price, we are talking about doubling the share count. I wouldn't go near it.