MVCO
I believe MVCO will break out to new highs and into the 20's over the next 3 weeks. The value is not yet recognized, but it reports on March 9. It reported $.60 EPS last quarter but paid only at a 4% tax rate, and it is not clear what other tax loss amounts they still have. I have not quite figured out the balance sheet (I am not an accountant) on how they account for the value of the 53% owned ReadyMix sub (RMX) which they have approx. 2 million shares, but at $16.65/share, that represents $33.3 million. RMX went public at $11 in September, 2005. In addition, at the end of 3Q, MVCO had $27.68 million of cash and equivalents, which at 4.2 million of FD shares is over $6.50/share of cash. The company has easy comps going forward and could earn any where from $1.50 to $2.50/share in 2006, again depending on the tax situation. With 4.2 million of FD shares currently priced at $15, $6.50/share of cash, over $7/share of value in the RMX subsidiary, and the potential to report earnings in the $2/share range in 2006, MVCO could be a no brainer for the rest of the year. Since MVCO owns 53% of RMX, it somehow includes RMX earnings in with it's earnings.
Disclosure: I own a bunch.
Tmcal
