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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (81222)	5/28/2000 9:02:00 PM
From: Spekulatius	Read Replies (1) \| Respond to of 132070

Federal Mogul - I think Khalil (Message #81210) got it right, FMO is highly leveraged and cash flow negative,which doesn't bode too well for the future. A book value of 2B$ for the company doesn't mean too much when goodwill is at 3.5B$ Meritor (MRA) seems to be a better company, even though it has significant debt as well. MRA trades at a PE of less than 4, plus I see its merger with Arvin as a long term plus. Also worth a look is Delphi, the GM spinoff, which has a PE of 8 but much less debt and a strong cash flow and better growth prospects due to its capabilities in electronics and its size.