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

To: James Clarke who wrote (10397)	4/20/2000 10:06:00 PM
From: Michael Burry	Read Replies (1) \| Respond to of 78497

GATX (GMT) Corp just sold most of its stake in its Logistics division. This is another interesting piece in their valuation tale. The stock jumped on the news, which tells me that someone out there knows something about what was paid. Logistics is part of the Integrated Solutions group, which had 600M in revenue and contributed just 6 million to income. The IS group also includes its terminals business. First comes a sale of two terminals for a seemingly overpriced 115M. Then comes this sale of most of Logistics. So you have a part of the business that contributes little in income, so is having its asset value realized in bits and pieces. I bet Buffett did the calculations about what those bits and pieces that would be sold were worth before he invested. Plus, they have their GATX Capital group to invest their cash appropriately. Still holding my shares. This will be an interesting story to develop. Mike