Federal Mogul Holdings Corporation (NASDAQ:FDML)

CAPS Rating: 1 out of 5

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Player Avatar TMFUltraLong (99.95) Submitted: 1/6/2010 8:47:02 PM : Underperform Start Price: $17.95 FDML Score: +10.38

How many times do we have to allow Federal Mogul to go bankrupt before someone hits their forehead on a table and gets an epiphany..."oh, this company was better off left unsaved!"

Federal Mogul is producing profits only by cutting 11,000 jobs (yes... eleven thousand!) or 22% of their workforce in the most recent quarter. Did that really produce huge profits? Not really, just 10 cents for the quarter. If they did that for 4 quarters in a row they'd still be trading at nearly 45 times earnings while revenues continue to trail lower by 20% per quarter. When is enough enough with FDML? Net debt is over 2 billion dollars.... its just yuck, gack and blech all rolled up into one. So Carl Icahn owns 75M shares, he hasn't exactly been hitting them out of the ballpark the last few years so that doesn't phase me one bit. I don't know if FDML will die this time around, but this is absolutely not worth $18.

UltraLong

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