jouni1 Posted May 19, 2014 Share Posted May 19, 2014 i love how it's the least talked about spin off ever. it seems to make sense to break them up. Link to comment Share on other sites More sharing options...
Chalk bag Posted May 19, 2014 Share Posted May 19, 2014 i love how it's the least talked about spin off ever. it seems to make sense to break them up. Trust me, it's not the least talked-out spin. Link to comment Share on other sites More sharing options...
jouni1 Posted May 19, 2014 Share Posted May 19, 2014 i love how it's the least talked about spin off ever. it seems to make sense to break them up. Trust me, it's not the least talked-out spin. i will trust you. thanks! Link to comment Share on other sites More sharing options...
gjangal Posted May 19, 2014 Share Posted May 19, 2014 Based on their prelim filing numbers, spin-off might trade anywhere between 17 and 22 per share, but all depends on the multiple the market is willing to give this business given that its a low margin business. 2013 Pre-Tax Income: 224 mn BV: 1802 mn Goodwill: 333mn Intangibles: 68mn TBV: 1401 mn ROE (Tangible) : 15.98% Should be interesting to watch, anyone else took a look at numbers? Link to comment Share on other sites More sharing options...
wachtwoord Posted May 19, 2014 Share Posted May 19, 2014 Based on their prelim filing numbers, spin-off might trade anywhere between 17 and 22 per share, but all depends on the multiple the market is willing to give this business given that its a low margin business. 2013 Pre-Tax Income: 224 mn BV: 1802 mn Goodwill: 333mn Intangibles: 68mn TBV: 1401 mn ROE (Tangible) : 15.98% Should be interesting to watch, anyone else took a look at numbers? I didn't have time yet (and do hold shares in NOV). Is it a moatless commodity business they're spinning off? I bought NOV for the business with the huge moat in providing drilling equipment to oil companies. I believe this is all retained in the parent company? Link to comment Share on other sites More sharing options...
jouni1 Posted May 20, 2014 Share Posted May 20, 2014 it's the distribution parts. meaning distribution as in distributing the parts to the people who need them. keeping stock and serving customers. a bit like ww grainger or wesco international/aircraft. Link to comment Share on other sites More sharing options...
wachtwoord Posted May 20, 2014 Share Posted May 20, 2014 it's the distribution parts. meaning distribution as in distributing the parts to the people who need them. keeping stock and serving customers. a bit like ww grainger or wesco international/aircraft. Thanks for mentioning the comparable businesses. Looks like these businesses have moats from scale and network effects the size of which will large determine the valuation. Interesting I would have imagined this business to be more commoditized. Thanks again! Link to comment Share on other sites More sharing options...
jouni1 Posted May 21, 2014 Share Posted May 21, 2014 it's also fun to think about buying a distributor with different products/industries targeted. the added network can be used to distribute existing product lines also. i like them both. probably going to even them out after the spin if valuations stay reasonable. Link to comment Share on other sites More sharing options...
gjangal Posted May 21, 2014 Share Posted May 21, 2014 The when issued's are trading at around 34. On 107mn outstanding shares that's a 3.6B market cap. 24 times earnings of 149 mn. They started at 30.4. http://ir.distributionnow.com/phoenix.zhtml?c=252871&p=irol-presentations The RIC is DNOW_w.N Link to comment Share on other sites More sharing options...
jouni1 Posted May 21, 2014 Share Posted May 21, 2014 can it be bought? my broker lists it but i can't trade. might have to phone them. Link to comment Share on other sites More sharing options...
gjangal Posted May 21, 2014 Share Posted May 21, 2014 I don't know much about it either, it looks like they can be bought and you will be entitled to the spin off shares after the distribution date. Better to contact your broker Link to comment Share on other sites More sharing options...
KCLarkin Posted May 21, 2014 Share Posted May 21, 2014 I didn't have time yet (and do hold shares in NOV). Is it a moatless commodity business they're spinning off? I worked briefly in the oil industry and my father managed a gas plant. It is definitely not a moatless business. If your gas plant is down for a week because your supplier doesn't have a $10 part in stock, it will cost you millions of dollars. My father's plant consolidated all of their business on NOV. I believe that they entered a multi-year supply agreement. This was in the 1990s, so I would have to look at it more detail before I would be comfortable investing. Link to comment Share on other sites More sharing options...
krazeenyc Posted February 8, 2015 Share Posted February 8, 2015 Can we merge this thread with the newer NOV thread? Link to comment Share on other sites More sharing options...
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