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

To: Grommit who wrote (10925)	7/11/2000 10:26:04 AM
From: Michael Burry	1 Recommendation Read Replies (3) \| Respond to of 78476

Congrats on the ANF. I would like to bring to this thread's attention that GATX is announcing it will sell its Terminals division. In my web site analysis justifying my buy, I had said, "There are a lot of assets ripe for shedding (as indicated by the $115 million being paid for just two of its tens of terminals) as well as potential for high returns in certain operating segments (especially Capital). This company needs capital allocation expertise, and if it didn't have it before, it has it in spades now." I was referring to Buffett jumping two-feet-first on board. Terminals includes many terminals owned outright -at least 15 in the US - and several significant statkes in international ones that bring its total to at least 34 terminals. They also own 4 pipelines, and they own, not lease, the significant amount of land related to all this. Now it's for sale. The question is what is left? We'll have to see what all this goes for, but this could drastically reshape the balance sheet and place a load of capital in the hands of the master allocator. There's even a vehicle already existing within the company, Capital, that is growing at least 15 years and has interests in telecommunications. GATX Rail and the steamship company are both still there too.