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Non-Tech : Conseco Insurance (CNO) -- Ignore unavailable to you. Want to Upgrade?

To: Robert T. Quasius who wrote (1090)	4/9/2000 8:52:00 AM
From: David T. Groves	Read Replies (1) \| Respond to of 4155

Conseco, With High Debt, Isn't a `Cheap' Stock, Barron's Says 12/24/99 9:34:00 AM Source: Bloomberg News Carmel, Indiana, Dec. 24 (Bloomberg) -- Conseco Inc., which has debt of more than $17 a share, isn't a ``cheap' stock, despite the decline in its price, Barron's reported in its ``Up and Down Wall Street' column, without citing sources. The company has a so-called tangible book value, which subtracts the costs of goodwill and other expenses, of negative $9.12 a share. Separately, Barron's said that First Union Corp., a bank, trades at less than 10 times next year's earnings estimate, making it a ``safe bet in an uncommonly unsafe market,' while Bank One Corp. provides an example of a bank that hasn't performed well because of making too many acquisitions. Last month, Conseco cut its quarterly dividend and said buyout firm Thomas H. Lee Co. would invest $500 million as the life insurer and consumer lender acts to improve its finances and shake off a junk-bond rating. (Barron's 12/27 p. 3-4) For the Web site of Barron's, type BARR . cnetinvestor.com I never said that Conseco CNC is an exact fit to FPFX. I only meant to warn that when the SH*T is stired, the smell gets stronger. $7 may look cheap, but look at the article above and realize that there is a NEGATIVE book value of $9, not the $14 that at first look we all accepted. Junk bond rating and signs of downgrades on the ratings to come. There will probably be more to come on this highly leveraged company. It took Firstplus Financial FPFX two years so far to get to a point where the future is looking brighter. The bankrupcy court and creditors ok'd their plan on Friday. They STILL will have to file their financials with the SEC, then investors will have some honest numbers. They STILL will have to get listed on a regular exchange if warranted. Their plan calls for them to pay off some creditors if they take the option of 100% payment, over a lesser percentage, over the next few years. Indicators from court documents are that they made money during this blackout time and paid down amazing amounts of debt and the sale of some of their loan servicing business will pay most of the rest, but still the payments will drag on! CNC might just decide that bankrupcy proceedings are the way to go to protect themselves while reorganizing. Hopefully they have the corporate structure so that they can separate it to a subsidiary or two like FPFX, and cover there ASSets. The point is that this could go on a while. FPFX survived their crunch. NOT EVERYBODY DOES! $60 to $.10 and a deal all the way down!! $7 is a lot better than what probably is coming.