On Friday, March 9, we will “celebrate” the 4-year anniversary of the Great Recession’s 2009 stock market bottom. Back then, the Dow Jones Industrial Average (DJIA) was below 7,000, a level first reached in 1997. Now its back to its all-time high of about 14,000, up 100% (and that excludes dividends). What makes optimism... »
Cyberonics (CYBX) just tanked, dropping 25% in eleven days, from its all-time high of $57+ to under $43. The apparent cause? Blowing The Whistle On Cyberonics – a short-seller report that criticizes the company on many levels, including fraud. While the company countered that the report was incorrect, that rebuttal fell on deaf ears,... »
Previously, in “PPG Shareholders: Beware Of Georgia Gulf Exchange Offer,” I suggested that the confusing, uncertain exchange offer carried risks that warranted saying “No.” That conclusion may seem questionable when reading PPG’s expectations. The original 7/19/12 press release, in addition to CEO Charles Bunch’s positive observations, stated that, “The transaction is highly complementary to... »
In my 49 years of investing, including a 30-year institutional investment career, I cannot recall seeing such a convoluted, contrived, shareholder-unfriendly corporate action. What started last year as a simple sale by PPG (PPG) of its commodity chemicals business to Georgia Gulf (GGC) for $2.1 billion has become a complicated, uncertain exchange offer –... »
