Before I get to some valuations I wanted to post these updates and news stories since it was a busy news day yesterday.
Dole
I thought this article was pretty benign yesterday when I first read it. It is Dole’s second quarter and strategic review update. The second quarter about matched the “analysts” expectations and they didn’t really announce anything of major value about the strategic review, quoting:
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Strategic Business Review
Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are assisting the Board of Directors and management in reviewing a number of strategic alternatives. The company is currently evaluating prospective transactions and options for a number of the companys businesses and has been in discussions with numerous third parties who have expressed interest in select businesses. For the worldwide packaged foods business, the company is exploring a possible sale transaction as well as a possible spin-off of this business to current Dole stockholders. The company is also exploring a possible separation of the worldwide packaged foods business in combination with Dole operations in Asia, into a stand-alone, primarily Asia-based company either through a possible joint venture with third parties interested in partnering with Dole or through an initial public offering in Asia. All of these alternatives are intended to enhance shareholder value. The company believes it is on track to achieve one or more of these possible transactions, or any other transaction in connection with the strategic review, by the end of the year. However, there can be no assurances that the company will pursue or complete any of the strategic alternatives that are currently being reviewed or any other transaction. The company intends to disclose developments with respect to the progress, if any, of the strategic review process at such time as the company determines that further disclosure is appropriate or where possible definitive agreement terms require disclosure.
They have been saying pretty much the same stuff for a few months now so I was surprised to see this morning that Dole is up more than $1 per share or about 11%. Glad I bought more shares for some accounts I manage. Unfortunately, I still have not been able to buy shares for my personal account, waiting for money to be available to put into the account, ugh.
Vivendi
Something surprising from Vivendi came out yesterday also. This article talks about how Vivendi is allegedly looking to sell GVT, its Brazilian telecom subsidiary. I was surprised to see this because I remember reading somewhere that they would not sell GVT, that they were planning on building around them.
In my opinion, GVT is the best long term subsidiary for Vivendi, it has the greatest upside potential, it is in a growing country that wants better telecom. But it also is going to have a lot of expenses due to upgrading their telecom network, which might be one reason why they are looking to sell.
Vivendi must either be getting some pretty good offers for GVT, or they are having a lot of problems selling ATVI.
Disgusting politicians, again
This article is about how Eric Cantor, or someone from his office, changed language in the STOCK Act that was passed in congress earlier this year to stop insider trading on Capitol Hill.
The language that was changed would now make members of the politicians families exempt from the law. After having this brought to their attention there is now “outrage” and they are now “working to change the law back to what it was originally intended to be.”
Disgusting politicians.
Signs of the coming recession?
First up is an article that talks about how South Korea is going through another banking crisis.
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Second is an article that gives “Overwhelming Evidence of a Coming Recession” here in the US.
I will leave it up to you to decide whether you think a recession is coming or not.
Next up will be some of my new valuation techniques I have been learning