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

To: Spekulatius who wrote (45341)	11/9/2011 11:25:11 AM
From: Spekulatius	3 Recommendations Respond to of 78753

re XLS I estimated the 1.6-1.7$ earnings based on pre-spinoff earnings from the ITTdefense operation. Some yahoo posters seem to come up with similar numbers. There is some uncertainty as far as overhead is concerned and of course how the business develops. With respect to XLS - look at it this way ITT pre spinoff was 44$ and you received one share of XLS, one share of XYL (water) and 1/2 share of new ITT (industrial stub). Defense (XLS) was almost 50% of the old ITT's revenues and now trades for a sole 20% of pre-spinoffs shareprice. There are some hairs ( some debt went to XLS and also most of the pension obligations, since I assume they are associated with the defense business) but still this is very very cheap, unless you believe the wheels are totally coming off from defense. Based on their last quarter, earnings in defense where down but better than expected and order flow was better than expected too. All, imo of course...