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

To: E_K_S who wrote (25321)	11/21/2006 12:36:25 PM
From: gcrispin	Respond to of 78669

Hello EKS, I have no experience with BV after a spin-off, but what you have written is interesting. FWIW, I do look at balance sheets and MWA's latest 10-Q indicates that half of assets are listed as "identifiable intangibles" and goodwill. Since MWA has taken over several companies in the last few years, it isn't surprising for me to see these numbers and I suspect their intangible net assets look very different from the stated 10.00 BV on Yahoo. (That 1.1 billion in debt is a very tangible number, however.) yahoo.brand.edgar-online.com investopedia.com I would imagine some people are short MWA and long Walters, although it didn't really indicate that in the latest numbers. Some of that "oversupply" could go to cover short positions, so it is really difficult for me to figure out what is going to happen once the shares are distributed. "If the new management can bring in earnings based on the analyst's Sept. 2008 estimate..." That is the 64,000 dollar question. If you haven't listened to latest CC, I suggest you do so. My conclusion--and perhaps my bias--, after listening to the Q&A, was that their sales from new construction make those estimates far from conclusive.

To: E_K_S who wrote (25321)	11/27/2006 10:11:13 AM
From: E_K_S	Respond to of 78669

WLT settles Bondholders suit - MWA spin off can proceed. Walter Industries Settles All Litigation With Convertible Senior Subordinated Note Holders biz.yahoo.com From the article"... The combined principal balance of Notes held by the note holders totals approximately $89.1 million and is being converted into approximately 5.0 million shares of Walter Industries common stock. In conjunction with this settlement, the Company expects that its Board of Directors will rescind the previously announced Walter Industries two-for-one stock split....". ---------------------------------------------------------------- As a result the distribution ration fow MWA will be reduced a bit. From the article:...However, the distribution ratio could be reduced further to the extent that additional shares of Walter Industries common stock are issued as a result of any additional conversions of the Company's Convertible Senior Subordinated Notes or the exercise of outstanding stock options prior to the close of business on the Dec. 6, 2006 record date for the distribution. If the remaining balance of the Company's Convertible Senior Subordinated Notes of approximately $16.3 million were converted, the distribution ratio would decrease to approximately 1.65...." ============================================================ A favorable entry point for MWA might occur once the WLT spin off and distribution is completed December 14, 2006. EKS