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Gold/Mining/Energy : Trailmobile Canada TMX (formerly MII) -- Ignore unavailable to you. Want to Upgrade?

To: eWhartHog who wrote (344)	6/3/1999 8:39:00 AM
From: JOE TURMAINE	Respond to of 406

eWhart, just thought I'd post your referenced message before the URL expires. >>Having got that off my chest, it is a pleasure to turn to a turnaround tale from Mississauga, Ont. After I noted that privatly owned Chicago-based Trailmobile Corp. had bought a majority interest in struggling Mond Industries Inc. (MII-T) a few months ago and elected Howard Buffett (the son of you know who) to the new board, one of my readers e-mailed me that he could not understand why the stock price was still slumbering around 37c to 43c. We now have the answer. The price was 52c on Friday, after reaching 60c on Thursday. More to the point, the new owners appear to be putting together an interesting corporate fit. Mond gets to concentrate on freight trailers in the Trailmobile design, using Trailmobile know-how, and to market its product line through Trailmobile's 16 branches and 81 full-time dealers across North America. In turn, Trailmobile stands to benefit from a lower-cost production facility to service the U.S. north-east and Canada. Mond is not out of the woods yet, as the first note to the 1998 accounts makes clear. It ended 1998 with a working capital deficit of $8.7-million and negative equity of $7.5-million, reflecting restructuring costs and an inventory writedown. But there are also hopes that ramping up output will begin to yield financial rewards in the second half of this year. Meanwhile, Mond's new management is giving shareholders (including this writer) the chance to follow up their investment through an issue of one right for every share held, with four such rights entitling subscription for one common share at an expected price of 31c. At Mond's recent stock price, that puts a small premium on the value of each right. << As you stated this is from >>Patrick Bloomfield in the Financial Post<< THANKS JOE