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

To: TimbaBear who wrote (12624)	6/10/2001 8:10:28 PM
From: 249443	Read Replies (1) \| Respond to of 78530

Kaneb (KAB): Thanks TimbaBear! I'll tell you what I know. 1) Kaneb will be added to the Russell 3000 index -- which will create index purchases of the common stock and effective on 7/1/01. russell.com 2) I am not sure of the partnership implications. There have been a few real estate (forest) deals that I have been involved with that have been partnerships -- but am not clear on this situation. (I anticipate selling the partnership shares -- and holding the higher growth common stock.) The partnership shares are being spunoff 1 for every 3 Kaneb owned. 3) I am showing (according to Value Line Extended) Kaneb Services had 31.14 million shares at the end of 2000. I like the fact that Franklin Balance Sheet is the top institutional holder -- since that fund does focus on the financial statements. Per Kaneb's earnings statement, dated 3/31/01, Kaneb had 31.261 (basic) million shares and 32.984 (diluted). 4) I am not sure of the issue of the 1.9 million shares to be sold -- per the 6/5/01 filing. (FWIW: the 1st quarter of 2001 share of earnings includes a $6,113,000 non-cash gain on the issuance of units by Kaneb Pipe Line Parners LP (KPP)). The financial statements are difficult to interpret due to Kaneb's "share of the pipelines, terminaling and product marketing businesses are now required to be reported in the financial statements as 'discontinued operations -- businesses to be distributed to common shareholders'". Time will tell -- I'm not clear on all of the different factors involved. I do believe that management is attempting to unlock value. Thanks Timba.

To: TimbaBear who wrote (12624)	6/11/2001 8:36:34 PM
From: 249443	Read Replies (2) \| Respond to of 78530

TimbaBear or anyone, "KSL will own the general partner interest and 5.1 million limited parter units of Kaneb Pipe Line Partners, L.P." --- this is an excerpt from the 6/6/01 company news. 1) KPP is already issued and trading (20.29 million outstanding shares). 2) KSL will be new symbol for the new KAB. 3) KSL owns 5.1 million KPP shares. I'm trying to identify where the 1 for 3 spinoff (which Kaneb will spinoff on 6/29/01) shares will come from? 4) This does seem like a good arbitrage opportunity -- if I can identify all of the exact issues. Based upon KPP trading already, @ $36, then this gives us part of the equation...