the numbers
assuming the worst...that is LDM writes off 100% of its investment in safety clean...the numbers for the last quarter endin Nov.30/99 would have been as follows:
Gross Revenues: $767.8 million
Net Income after Tax: $42.8 million
EPS: $.13/share
as you can see... there is no substantial direct impact on the financial viability on LDM's continuing operations...LDM is worth more without SK then it's current share price. I don't intend to give away my shares tomorrow.
LDM wants to sell SK and their ambulance division...they have made that very clear...it is unlikely we will see anyone stepping up to buy SK anytime soon but the ambulance division is another story.
LDM is still a prime takeover canidate...assuming with a viable SK it was worth $8.00/share... writing SK off, we are still talking $6.00/share (330 million out @$2.00 discount = $660 million..the value of safety clean) @$6.00 share you would save $660 million and not have to worry about the money losing SK investment.