Author Topic: TDG - Transdigm  (Read 143484 times)



Grenville

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Re: TDG - Transdigm
« Reply #301 on: February 24, 2017, 02:17:25 PM »
For whatever it's worth, Transdigm sells an additional 300mln of 6.5% 2025 notes at 101.5%.

Liberty

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Re: TDG - Transdigm
« Reply #302 on: February 24, 2017, 07:35:58 PM »
For whatever it's worth, Transdigm sells an additional 300mln of 6.5% 2025 notes at 101.5%.

They had stopped their previous offering when Andrew Left published his piece, so that's probably them getting back to it.
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matthylland

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Re: TDG - Transdigm
« Reply #303 on: March 06, 2017, 04:39:33 PM »
Does anyone here go to TDG shareholder meetings? I have held the stock for a few years now and never made it. I really thought I'd make it to this years'...but it didn't happen.

Is it an event worth going? Any worthwhile notes or comments?

Liberty

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Re: TDG - Transdigm
« Reply #304 on: March 07, 2017, 11:06:36 AM »
TDG being hit again today. Here's what I found:

https://twitter.com/QTRResearch/status/839185480595963904

« Last Edit: March 07, 2017, 11:15:05 AM by Liberty »
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hooplaer23

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Re: TDG - Transdigm
« Reply #305 on: March 09, 2017, 11:55:30 AM »
Does anyone else have thoughts on the Citron report that came out today?  I am pretty skeptical about the section related to Bratenahl Capital.  After looking around the website, its seems like this is just the family office for Nick Howley and that they invest mostly just in other PE funds with some occasional co-investments.  The diagram points out investments in Odyssey and Berkshire, both well-respected PE firms that have been investors in TDG in the past. It wouldn't be surprising to me that Howley's family office would then make an investment in those funds.  I just don't see how that allows TDG to commit some sort of fraud, and I guess I don't see why its a big deal that Nick Howley set up the entity rather than his son who now runs it?

Grenville

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Re: TDG - Transdigm
« Reply #306 on: March 09, 2017, 11:59:53 AM »
The point that I'd like more info on is the breakdown of their EBITDA between Commercial & Defense. I haven't been able to find it yet. They breakdown revenues into Commercial OEM, Aftermarket & Defense but not EBITDA.

walkie518

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Re: TDG - Transdigm
« Reply #307 on: March 09, 2017, 12:22:45 PM »
The Citron report appears to insinuate that there may be self-dealing.  However, the report does not uncover any new information.  It only asks for TDG to respond to its questions, regardless of merit.  If I were Howley and there was indeed no self-dealing, I wouldn't give Citron the time of day. 

As far as I can tell, clerical errors happen and Citron is grasping at straws. 

Schwab711

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Re: TDG - Transdigm
« Reply #308 on: March 09, 2017, 01:19:51 PM »
The Citron report appears to insinuate that there may be self-dealing.  However, the report does not uncover any new information.  It only asks for TDG to respond to its questions, regardless of merit.  If I were Howley and there was indeed no self-dealing, I wouldn't give Citron the time of day. 

As far as I can tell, clerical errors happen and Citron is grasping at straws.

Completely agree. They point out one interesting detail I didn't know but fail to mention the mechanism they used to inflate prices. Without that explanation, all they really have is a lot of different font sizes and colors.

However, there's probably pretty high odds that TDG is ripping off the USG in some form or fashion. The margins are just too high and the USG is too large of a customer for this to not be true. How  and how much are vital questions that no one seems to have the answers to (at least we know Citron doesn't). If someone figures out how and how much with respect to the USG then I'd guess TDG is going to be in serious trouble as a going-concern.

Nice job LongHaul for pointing out the EBITDA contribution question and other red flags for awhile now. I bet the answers to your early questions are going to be a big story at some point.

walkie518

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Re: TDG - Transdigm
« Reply #309 on: March 09, 2017, 02:11:19 PM »
However, there's probably pretty high odds that TDG is ripping off the USG in some form or fashion. The margins are just too high and the USG is too large of a customer for this to not be true. How  and how much are vital questions that no one seems to have the answers to (at least we know Citron doesn't). If someone figures out how and how much with respect to the USG then I'd guess TDG is going to be in serious trouble as a going-concern.
There is always someone else on the other side of the table.  The government has the right to terminate existing contracts, reduce the value of those contracts, and audit costs associated with its TDG contracts unilaterally.   These are unfair terms.  Shouldn't TDG be paid a premium to enter a one-sided contract?  Alternatively, shouldn't the government division responsible for inking the deal be checking commercial pricing considering the circumstances?