The Rising Influence of Rising Affluence

[DewDiligence]

PCL—The discussion in the prologue of #msg-43004163 shows how I arrived at the $53/sh figure using two methods. Please note that my $53 figure is very conservative—PCL’s own assessment of how much its shares are worth is in the mid $60’s, according to the presentation at PCL’s Investor Day in Mar 2010.

can you shed any insight on the joint venture and related $750m+ in bonds?

The Campbell JV was formed on 10/1/08 at the height of the Lehman scare. At that time, PCL believed it needed more liquidity than what was afforded by the revolving credit line, and the JV provided an additional $783M.

As it turned out, PCL overestimated its need for liquidity. On the most recent CC, management said the existing $750M revolver that expires in Jun 2011 will be replaced by a new, smaller credit line.