|
Opening Segment #3: |
 |
|
'Mad Mail' |
|
|
|
Jim reads
viewers
email
questions
and provides
answers
below...
|
|
|
|
Wednesday,
November 19, 2008 |
|
|
 |
 |
|
|
|
|
|
Jim's
rating on
this stock |
STOCK
SYMBOL |
Closing
price that
day |
Full Company Name |
|
 |
SGR |
12.86 |
|
Email question about:
Shaw Group Inc. (SGR)
Q:
Is SGR really a stock
we can consider as selling
near cash, when they have
$1.17 billion in debt, and
only $927 million in cash?
Wouldn't we want to place
SGR last, behind
KBR (KBR),
Fluor (FLR)
and
Foster Wheeler (FWLT*)?
Since, when factoring in
debt, these companies
still have positive cash
per share, and SGR is
negative?
Jim:
Well, not all debt is
created equal. Some of
this debt is just for
their ongoing business, so
I'm not... I should
include it. You're
absolutely right but, in
the end, if you wanted to
buy this book of business,
you would keep this debt
on it. So, in other words,
if you bought SGR, you
would include that debt.
It's the market cap... You
wouldn't have to buy that
debt to do it. You'd just
have to buy the market
common stock. And the debt
you'd keep, because it's
cheap, okay. You have to
finance these projects.
You can't just go to the
bank and say, listen, I've
got this great project,
and don't worry about
it...
|
|
|
|
See comments continued below...
|
|
|
|
|
|
|
|
|
|
Wednesday,
November 19, 2008
(Cont'd from
above)...
|
Jim's
rating on
this stock |
STOCK
SYMBOL |
Closing
price that
day |
Full Company Name |
|
 |
POT |
64.02 |
|
Email question about:
Potash (POT)
Q:
Thanks for all of
your guidance - you've
been a big help in these
tumultuous times. However,
your recent sell pick of
POT has me puzzled. This
seems like a great Obama
play since his home state
of Illinois is a big corn
producer and he is a big
supporter of ethanol. Any
advice?
Jim: I
said that
Archer-Daniels-Midland
(ADM)
is much cheaper and, if
you wanted yield,
Terra Nitrogen Company, L.P.
(TNH)...
So, what I did is
basically tell you other
stocks that I thought
really gave you a better
bang for the buck. TNH,
because it's more
conservative,
fertilizer... and ADM,
because it's already come
down a lot and had a
better-than-expected
quarter.
|
|
|
|
ADM |
22.14 |
|
Archer-Daniels-Midland
(ADM)
See POT comments above
for:
ADM
|
|
|
|
TNH |
90.92 |
|
Terra Nitrogen Company, L.P.
(TNH)
See POT comments above
for:
TNH
|
|
[verbatim recap]
Read Jim's next Segment
here
|
|
|
|
|
|
|
|
|
|
|
|
 |
 |
|
|
|
Search for Jim's past comments about a specific
stock. Use
ticker symbol or company name in quotes
(e.g., GOOG or "Google") |
|
 |
|
|
|
|
|
|
