Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Hi everyone,

JM seems to be back in that attractive price area again.

Seemingly the drop back in price has to do with the probablity that the buyout will not go through. (As reported in NYT and Wall Street Journal articles around 10/5).

I've got mixed feelings about that, though the buyout price was decent at about $13 cash, I'm not sure what the PIKs would have been worth. Given the companies recent performance, I don't think $15 or $16 cash would be an unreasonable amount, so maybe not doing this deal isn't so bad after all.

More troubling is that it was mentioned in the articles that JM had a "bad" 3q. I'm not sure exactly what that means, the housing stocks seem to be indicating that sales will be allright on that end, major rent increases in the REIT end seem to indicate that commercial demand is at least OK, so I'm just wondering how bad will it be.

So for now, I guess I'll wait until I see the 3q numbers and if they don't look too bad, this number around $7 or $8 looks really pretty attractive.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.