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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (854)	10/1/1998 5:28:00 PM
From: Allen Furlan	Read Replies (1) \| Respond to of 1722

"Bargains of Historic Proportions?" is the lead on a Glasssman article in todays Washington Post. He cites Bernstein & Co. as accumulating commodity companies at bargain prices.(paper,aluminum,chemicals). I found this interesting as it reflects my thinking that if the world does not implode some of these companies will be major beneficiaries when capacity is wrung out and the world economy resumes its upward course. Very specifically, I have been accumulating Borden Chemical and Plastics at unbelievably low prices(between 3-3.5). Here is my question. The company sports a nominal book value of about 5 dollars, but the un-depreciated production assets are about 17 dollars a share. This explains how the company could have generated a cash distribution of 4.66 per share in 1995 and averaged over 2 dollars per share for the past 10 years. The question is how does one ferret out companies which may have gold buried in the balance sheets? Any thoughts and comments would be appreciated.

To: porcupine --''''> who wrote (854)	10/5/1998 8:55:00 PM
From: porcupine --''''>	Respond to of 1722

AT&T says Vanguard deal to be marginally dilutive--Reuters NEW YORK, Oct 5 (Reuters) - AT&T Corp. said Monday its proposed $1.5 billion acquisition of Vanguard Cellular Systems Inc. will be marginally dilutive to its earnings in the first year and will boost earnings thereafter. "We do expect it will be marginally dilutive in the first year ... (but) not material to AT&T's earnings, and we expect that it will be accretive in the second full year of operation," an AT&T spokeswoman told Reuters. Earlier, AT&T and Vanguard said they had agreed to combine, with Vanguard shareholders receiving $23 cash or 0.3987 AT&T share for each Vanguard share, with the overall consideration capped at 50 percent cash and 50 percent stock. The companies valued the deal, designed to increase AT&T's cellular telephone market share in the eastern United States, at $1.5 billion, including AT&T's assumption of about $600 million of Vanguard debt. Vanguard will add 625,000 cellular customers to AT&T's existing base of 8.7 million, a figure that includes subscribers under partnerships AT&T has in certain markets, the AT&T spokeswoman said. Vanguard, based in Greensboro, N.C., operates the Cellular One network of cellular telecommunications. In early Nasdaq trade, Vanguard shares climbed 1-11/16 to 21-9/16. On the New York Stock Exchange, AT&T shares slipped 3/4 to 57-7/8. According to First Call, analysts' consensus earnings estimates for AT&T are $3.41 per share in 1998 and $3.97 in 1999, excluding the Vanguard deal. The companies said they expect the transaction to close in the first quarter of 1999, subject to approval by Vanguard shareholders, federal regulatory agencies and certain other conditions. AT&T, based in New York, is one of the world's largest communications and information services company. In addition to the Vanguard purchase, AT&T has pending its merger with Tele-Communications Inc. valued at about $48 billion when it was announced last June. ((--Brendan Intindola, N.Y. Equities, 212-859-1734))

To: porcupine --''''> who wrote (854)	10/5/1998 9:05:00 PM
From: porcupine --''''>	Read Replies (1) \| Respond to of 1722

Boeing 737 Production To Increase -- AP SEATTLE (AP) -- As of Monday, the Boeing Co. (NYSE:BA - news) is set to produce one new-model Boeing 737 per business day or 21 a month, three times as many as at the start of the year. The achievement, following an interim increase to 14 of the twin-engine jetliners a month over the summer, shows that difficulties at the 737 factory in Renton have been largely resolved, said Stephanie Mudgett, a spokeswoman for Boeing Commercial Airplane Group. A further production rate increase to 24 a month is set for mid-1999 with the additional three planes to come from the old McDonnell Douglas assembly plant in Long Beach, Calif. As of Aug. 31, Boeing had delivered 77 new-model 737s and held orders for another 1,057. The 737 problems, ranging from parts shortages to imposition of last-minute certification requirements, were a big factor in about $3 billion in company write-offs over the past year. ''Everybody has come together, and that's what I'm most pleased about,'' said Dennis Vezzetti, operations director for Boeing's Renton division.