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

To: Harshu Vyas who wrote (75737)	6/5/2024 7:55:02 PM
From: E_K_S	Read Replies (1) \| Respond to of 78476

Re: LEG Watch for a 'Kitchen Sink' quarter and that will be the time to buy. I am thinking $9-$8 share price after the bad quarter (w/ several write downs) then back up to $35/share in 18-24 months. They have mentioned middle/end of 2025 for the restructure to be completed. Watch for the announcement of those real estate assets being sold from the manufacturing plants being shut down. Management said that would occur in early 2025. Legacy companies require a restructure/facelift periodically (every 10-15 years) and that is when you can buy 'value'. Problems are generally fixable if all that is required is capital for new manufacturing/production assets. Some times it is a much more difficult problem and it's easy for the investment to become a 'value' trap. ----------------------------------------------------------- LEG will be my 2025 turnaround candidate. Keep your eye on the FCF. If that goes negative, expect the dividend to be eliminated.

To: Harshu Vyas who wrote (75737)	4/2/2025 8:01:01 AM
From: E_K_S	Read Replies (2) \| Respond to of 78476

RE: Leggett & Platt Inc (LEG) L eggett & Platt Signs Agreement to Sell its Aerospace Products Group Leggett & Platt has signed an agreement to sell its Aerospace Products Group to affiliated funds managed by Tinicum Incorporated for a cash purchase price of $285 million before customary working capital and debt-type adjustments. The transaction is expected to close in 2025 as soon as all closing conditions are met, including necessary regulatory approvals. The after-tax cash proceeds are expected to be approximately $240 million. The Aerospace Products Group is a supplier of complex, highly engineered tube and duct assemblies for use primarily in commercial and military aircraft platforms and space launch vehicles. The business is comprised of seven manufacturing facilities located in the U.S., UK, and France and approximately 700 employees with net trade sales of $190 million in 2024. This divestiture is part of the ongoing strategic business review, aimed at determining which businesses are the right long-term fit for the company. 2025 full year guidance excluding the Aerospace Products Group will be issued after the transaction closes. Lazard is serving as exclusive financial advisor and Freshfields is serving as legal advisor to Leggett & Platt in this transaction. Current Market Cap $1.06 Billion so this sale represents 23% of the current market cap. Company is currently doing a restructure; consolidating 34 facilities. Didn't realize this facility has 7 operating facilities and generated $194 million in revenues. That's only 4.4% of their total revenues. Company is at an All Time Low; 7.5x PE, 2.5% div yield but Debt/Equity at 2.7x still high. These funds will go along ways to reduce debt. This is my 2025-2026 reversion to mean candidate w/ potential price target at/near $30 if their restructure is successful.