I had to read this three times before I could actually believe these clown are serious. You will find the man who made the offer’s contact info at the end.
Philip Morris International (PM) has been notified of an unsolicited “mini-tender offer” by TRC Capital Corporation to purchase up to 2.0 million shares, or approximately 0.09%, of Philip Morris International stock for $49.25 per share.
OK. Let’s just assume that is not a 3.2% DISCOUNT to the price I could sell it in the market today. Let’s also assume we are not looking at 15% to 20% EPS growth in the future. Let’s also forget that there is no multi-billion dollar buyback being exercised by the company as I write. While we are at it, we should also ignore that it is a market leader (and growing) on a massive international stage. Of course we also need to eliminate the fact based on current EPS the stocks trades at 15 times earnings which essentially is a discount to it growth rate.
What is maddening is just how stupid they think PM investors are? We have waited for years for this spin from Altria (MO) and now they actually think we are going to plop our shares over to them at a discount to current prices?
You may contact the man who made the offer, TRC Capital Corporation Lorne H. Albaum CEO (416) 304-1932 ext.223, and tell him yourself “I got your tender offer right here pal!”.
Here is a brief description of the company. The fact he made the offer means he thinks the price is going higher. He is just trying to take advantage of investor who may be confused by the “mini-offer” and think the company may be sold.
I spoke to Mr. Albaum Friday. He claims he is going to hold shares for a “long term investment”. He also said that shares tendered by the 29th would become his then and he would have “2 or 3 days” to actually pay for them. When I said, “well, if the price stays the same as it is today, you could essentially sell all of the 2 million shares (assuming he gets them all) the 29th and never pay a penny and pocket $2 to $3 million dollars”. After an awkward pause, he stammered, “that is a possibility”.
Or, he could sell 1/2 and then keep the other half after which he would have paid nothing for them. When I asked if he was going to keep all the shares he said “he would have to look at that depending how much capital was at risk”. Short answer? No.
He said the offer is made for people who own “10 to 12 shares and the offer may pocket them more money than paying a broker a commission to sell them”. Well, Etrade (ETFC) charges me $9.99 a trade and even at that, I come out ahead of Mr. Albaum’s price if I only had 10 shares. I asked him what other scenario’s there were and he said “numerous” but did not give any.
If you are contacted about this please ignore it.
Disclosure (“none” means no position):Long PM, MO, None
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5 replies on “Phillip Morris Int. Tender Offer: Just How Dumb Does TRC Capital Think We Are??!!!??”
TRC is well known for doing this. You’re right to point out everything wrong here – good work.
How can you ethically own a company that is killing people every single day? How can you be gleeful about their expected growth when that means millions more smokers, health problems and death?
You may not want to acknowledge it, but as a shareholder you are part owner and thus part responsible for what this company does.
Anon,
last time i looked, smoking was a choice just like drinking, eating fast food, loading up on prescription meds, eating genetically modified foods, driving gas guzzlers etc….
having lost someone very close to lung cancer, I have no reservation at all in this investment
this investment will someday send my kids through college and that is called making something good out of it..
Companies often try this kind of b.s. on owners of odd lots of shares. It’s probably most likely to work after a company has been spun off and people end up with say 7 shares that they don’t want to deal with. Having disposed of such shares at a discount a number of times, I now want to look into spin-offs as a buying opportunity.
Hi, you are talking about Phillip Morris. It is famous all over the world as a tobacco company. Detailed information about Phillip Morris you may find on the web site of the company. But there is one more rather important aspect – customers’ reviews. http://www.pissedconsumer.com is the right place to look for truthful reports.