This is undeniably ridiculous. The executives of this organization should be ashamed. This once great company is about to be brought to its knees and we will be the ones picking up the pieces
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Chapter 11 bankruptcy is very likely, but only after Roman retires.
Todays gonna be a stinky one!
$258 to $86 in 5 years
What a feat
I've done the math two ways, based on 1) gross sales and 2) EBITDA, and I get the same basic answer by both methods.
SpinCo is worth in the area of $25B in market cap. (give or take)
3M will hold on to 20% of that. So the 'free' part of SpinCo is around $20B.
3M's market cap today is $48B, subtract the $20B that will be spun off, that leaves a 3M worth AT MOST $28B.
$28B - that is the most RemainCo is worth according to the market, just over 1 year's sales. The question for each shareholder to answer is: "Are the unknown or unaccounted for liabilities bigger than $28B?"
My answer is an unfortunate yes, and that is why I think RemainCo will declare bankruptcy shortly after the spin.
86
I agree on the spinco price. Remainco may be near 0 when more cities and states and countries sue over the forever chemicals flood the courts. Goodbye 3M
New low
Some have assessed the value of SpinCo at $60, this - if true - would put the rest of the company at $27. The fact that there is no communications internally, no town halls, my VP in Austin is invisible. This has changed the lives and futures of tens of thousands of employees and families. It needs to be sold and the management team gutted.