Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Loewen Group -- Ignore unavailable to you. Want to Upgrade?

To: Demetre Deliyanakis who wrote (143)	4/3/1999 3:56:00 PM
From: Glen Gordon	Read Replies (1) \| Respond to of 277

Got it, you're saying that even in worst case, bondholders would get paid. Thanks. Regarding the Cat and Mouse between LWN and the Houston Lads, you're right. However, the game is not only between Loewen and SRV and Loewen and STEI - it is also between STEI and SRV. SSRV and STEI have STATED that they are going to take a breather on acquisitions, probably in large part to put the screws to Loewen. In the background however, they will be kicking themselves if they miss out on an opportunity to buy a group of homes from Loewen for 30% less than they would have to pay on the open market by buying one at a time. The market value of Funeral Homes has for the past several years been dictated by SRV and LWN. They drove prices up and now that they've stopped buying, the values are way down. The resumption of acquisition is required not only to grow revenues, but also to get Asset values back up to close to book value. STEI will buy. IF they wait and Loewen's situation does not improve, then they might get a lower price. BUT, if they wait and Loewen's situation improves (the PATs issue gets resolved) then they've blown an excellent opporutnity to gain market share. Also, if Loewen goes under, STEI probably wouldn't get a chance to buy up the properties in liquidation - SRV has all the connections and would work out a deal to buy everything of value. This is why I say STEI will buy, and they will pay a reasonable price (55-80% of BV, depending on how large the bundle is). Loewen was $US 30/share last year. My view is that they probably won't hit that number for many many years (if ever). However, when the STEI sale is announced, Loewen will go to $3, which is 100% higher than it is today.

To: Demetre Deliyanakis who wrote (143)	5/19/1999 1:00:00 AM
From: Michael Bidder	Read Replies (1) \| Respond to of 277

Demetre I strive to find the obvious thing. Here are some thoughts on the Leverage of the Balance sheet. To raise 300 million means they will need to sell assets. This will increase the leverage of the balance sheet because they are selling properties at a discount and paying down debt that surpasses that total value of the company. Furthermore they will lose the revenue of those assets. In effect the sale of assets leaves them in a worse state than before the sale. Regards, Michael Bidder