Author Topic: TEN - Tenneco  (Read 3438 times)

Mephistopheles

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Re: TEN - Tenneco
« Reply #10 on: June 08, 2020, 03:45:53 PM »
Congrats!

Thank you! Now watch it shoot up another 50-100% in the next week.
« Last Edit: June 08, 2020, 03:56:33 PM by Mephistopheles »


valueinvestor

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Re: TEN - Tenneco
« Reply #11 on: June 08, 2020, 08:56:45 PM »
Just did with PK and AEO lol, but hey itís happens to the best of us.  :P

nspo

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Re: TEN - Tenneco
« Reply #12 on: June 08, 2020, 09:11:13 PM »
This is a tough call for me. I started loading up some leaps at around 4. My thought was that the business has an out in their Driv spinoff slated for later this year. The sub does about $500m in ebitda and can likely take 3-4x leverage. This leverred spin will free up the remainco. The business has $1.5B in liquidity and next big maturity in 22'. If they can successfully spin (ie Icahn pushes the board) I think this thing can absolutely take off to levels seen in the past. It's tough because of the urge to take some off the table but I believe there's a good probability of these plans.

Mephistopheles

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Re: TEN - Tenneco
« Reply #13 on: June 27, 2020, 06:34:49 PM »
This is a tough call for me. I started loading up some leaps at around 4. My thought was that the business has an out in their Driv spinoff slated for later this year. The sub does about $500m in ebitda and can likely take 3-4x leverage. This leverred spin will free up the remainco. The business has $1.5B in liquidity and next big maturity in 22'. If they can successfully spin (ie Icahn pushes the board) I think this thing can absolutely take off to levels seen in the past. It's tough because of the urge to take some off the table but I believe there's a good probability of these plans.

I like the liquidity, but you're saying load up Driv with leverage prior to spinoff, would that not create potential fradulent conveyance issues in the event of a default?

Otherwise, stock has nearly halved in less than 3 weeks. I started selling near term puts which are priced very well. Too bad I only sold off about a quarter of my position at $12.