Hawmps (< 20)

Watching VE

December 16, 2011 – Comments (3) | RELATED TICKERS: VE , FTE , PT

Veolia Environnement (VE) -

This is one I'm watching that's in my at least top five for what to buy now.  VE is bouncing along a new 52wk low, making the dividend yield skyrocket.  So, reading up on a few things (paraphrasing a bit, it was a few days ago).

-the dividend is expected to be cut from $1.72 to around $1.50 ($1.20 cash and remainder a buy-back option or something I think)  and should be similar in 2013.  I read something a few days ago but can't find it and I'm sure I'm off a little on those.

-planning to sell about 5bil euros in assets to reduce debt in 2012-2013

-current price to book is less than 0.8

-add to that the falling euro

-the dividend may be cut, but compared to the current price of the stock, it is not a big cut which gives me more long term confidence in the company. 

Considering spending some real money on this one and soon.  This is a well established company that appears to be contracting at the moment.  But, the company deals in escential services and the current contraction I view as a stratigic reorganization and I think Mr. Market has beaten this one down way too hard.  If there are good buys in Europe to be benefitted from the issues over there, I think this is one of them.  Anyone else following?  Other bets I'm making in Europe are FTE, and PT.