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I opened my position in IAR today. It is trading as IARw, i guess until it is issued on November 17. Looking at the article it seems like it will drop after institutionals sell off. :(

But just looking at the financials, if shares are trading at $28, and there will be 150million shares outstanding, that leads to a market cap of $4.2 billion. In 2005 it has generated $1billion in FCF. Which seems a bit rediculous. This number even includes interest expense on the $9billion it had in debt associated with the spin off.

I know revenues are decreasing, and 2006 will be about 20% lower in FCF. But with these numbers, this little publicity, at this price I am not willing to sit back and see what happens.

If it does in fact drop I will buy significantly more.

Let me know what your analyses say. Is there a misjudgement in these numbers, or what?

BTW, the fins are posted here:
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