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

To: Spekulatius who wrote (46142)	1/10/2012 11:29:47 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78753

OT - Pension liabilities Don't you think that ultimately the resolution will be to reneg pension obligations? Although this probably makes the company stocks even more short-while.

To: Spekulatius who wrote (46142)	3/2/2012 9:52:10 AM
From: Spekulatius	3 Recommendations Read Replies (1) \| Respond to of 78753

re XLS - i was dead wrong selling this stock. Earnings for 2011 and forecast exceeded expectations and the stock is up to 11.5$. However, the pension hole problem remains and most of the FCF is going there to fill it. According to their last presentation from 3/2 (P13) , the unfunded pension is 1.92B$ as of 12/31/12. Furthermore, the pension gap estimate assumes a 9% return on assets; good luck achieving that with ~42% of their assets in fixed income.