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

To: E_K_S who wrote (46194)	1/16/2012 9:40:48 AM
From: Spekulatius	Respond to of 78688

Good writeup regarding Michelin, I can mostly confirm these numbers. GT's 4.5x EV/EBITDA does not contain the Pension liabilities of 2.6B$ (CS claims 3.45B$ as per 12/31/11). When taken that into account, GT 4-4.5x EV/EBITDA increases to 5-5.5x EV/EBITDA. Due to their Pension deficit, they have to make substantial contributions to their Pension plan, I have seen numbers as high as 400M$ anually. Also GT has lost market share for many years now - their are underrepresented in emerging markets where ML and Bridgestone are much stronger.

To: E_K_S who wrote (46194)	1/17/2012 3:19:19 PM
From: Madharry	Read Replies (1) \| Respond to of 78688

OT the new pelangio a speculative junior mining company operating in ghana reported some fine drill results yesterday on the manfo site. this is not a recommendation but i continue holding all my shares, some purchased at double todays price. the symbol is px.v for those of you interested in such a speculation. As far a michelin goes I think there is a lot more due dilligence that needs to be done. what is the dividend? how are pensions accounted for in france? what would be the impact of euro splitting on the michelin operations? As a side rant I tended to look at cash as cash no matter where it was held, but perhaps we need to discount cash based upon what continent or country the cash is stuck in, as it may not be available to shareholders.