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

To: E_K_S who wrote (36447)	1/13/2010 10:25:54 AM
From: Grommit	Read Replies (1) \| Respond to of 78743

LLL & FR announcement: I agree with you but do not see where they are paying a premium. I may have mentioned that I have small positions in FLR, SHAW and VSEC. I recently took a similar position in LLL. Although (like VSEC) I do not understand their business, it sounds impressive and important. They sell airport scanners, but it is a very small part of their business. finance.yahoo.com The U.S. Transportation Security Administration now plans to buy a total of 450 body-scanning machines -- more than ten times the number now in use... After testing Rapiscan against the existing vendor, L-3 Security & Detection Systems, a division of L-3 Communications Holdings Inc., the government in October said it would purchase the 150 new machines from Rapiscan.L-3 makes the 40 machines that have been deployed by the TSA.

To: E_K_S who wrote (36447)	1/14/2010 12:18:22 AM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78743

FR is playing a game. On one hand, they want to persuade the debt holders to tender early and cheap(ish), so they are making things sound bad by mentioning pref divvie suspension. On another hand, if they cannot persuade debt holders that things are bad and they don't get debt tendered, they MAY be forced to suspend the prefs. My guess would be that they get partial tender and they continue to pay prefs, but it might be smart to reevaluate (oversized) FR pref positions. If they suspend and prefs tank, it might be a great opportunity to load more. Have to be nimble, prepared and up-to-date with their latest financials to make decision as this unfolds. :) Good luck.