MVCO
Someone asked a question a few days ago on how MVCO accounts for the 2+ million shares of RMX it owns. MVCO treats RMX as a wholly owned susidiary for reporting purposes since it owns 53%. On the balance sheet, the line item "minority Interest" reflects the portion of the original proceeds of the IPO that went to RMX and the earnings of RMX that are associated with the shares of RMX that MVCO does not own. I believe that cash is kept separate and the shares are not valued at all.
Regarding the secondary offering today, I think the pricing and commission were a little off, but I think they really needed the cash for bonding/bidding purposes, otherwise, why do it. Frankly, I don't appreciate the 20% dilution unless it can result in a 50-100% stock price appreciation from increased business in the next 12 months.
Tmcal
