User 244953

Capital Crossing Preferred Corp: Too Cheap?

how about an update? recent comments on investors hub and yahoo finance message boards.

Is KHD Humboldt Wedag the Ultimate Emerging Market Value Play?

Extremely poor management, though. They have a history of self dealing and instead of selling assets for cash they prefer to spin-off into illiquid securities. They should just sell the company while its worth something and distribute the proceeds along with the cash on the balance sheet.

What are they going to do with the cash? Nothing. They are looking at acquiring assets for $0.50 on the dollar and recently had a brilliant idea of building and owning cement plants (vs just building). Management could never pull that off.

KHD Humboldt Wedag: An Undervalued Winner

Tim- please comment on the apparent self dealing that the company conducts? Smith is a Director at MFC and KHD. Instead of selling SWE Reit, he decides to spin it off (more below). 9 months later after a "shareholder vote" MFC has decided to acquire SWA in its entirety. Of course price will be determined after an independent valuation (my money is on the value of MFC being higher than market value and/or SWA being appraised below market value).

On top of that, the preferreds that KHD owns of MFC and being swapped into MFC shares. Seems like Smith is trying to find a way to increase the float and volume on MFC!!

You say that management is smart- I disagree. While they did purchase the KHD business for nothing and turned it into a huge business, Smith continues to do "dumb" things. Namely, spinning off businesses instead of selling them. The claim is that it is more tax efficient. Not really when you consider the illiquidity of the assets he spins off. Oh, by the way if he was selling the assets at a gain he would book at gain and it would actually increase non-operating revenues!

If you sell it and do not need the cash- issue a special dividend.

Smith is not going to find any quality businesses to purchase. He is always going to lose on price.