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A O Smith Corp V.AOS


Primary Symbol: AOS

A. O. Smith Corporation applies technologies and solutions to products manufactured and marketed worldwide. The Company operates through two segments: North America and Rest of World. Both the segments manufacture and market a comprehensive line of residential and commercial gas and electric water heaters, boilers, tanks, and water treatment products. Its Rest of World segment is primarily comprised of China, Europe, and India. The North America segment serves residential and commercial end markets with a range of products, including water heaters, boilers, water treatment products, and other. The Company also manufactures expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, related products and parts. Its Lochinvar brand is a residential and commercial boiler brand in the United States. Its water softener branded products and problem well water solutions include the Hague, Impact Water, Water-Right, Master Water, Atlantic Filter and Water Tec brands.


NYSE:AOS - Post by User

Post by energyinvon Apr 29, 2016 9:47am
144 Views
Post# 24824587

2 Bit Schmucks or Smokescreen

2 Bit Schmucks or Smokescreen
When I heard GM at SW was driving the aquistion of AOS stock I was confident that the new BOD would leverage the AOS cash into a new business plan. But now, I'm not sure.

My question is this....

Why on earth would a capital investment company spend all the time, energy and money  and assume the liabilities and legal fees associated with a hostile takeover on a publicly trading company,,,, just to dissolve it and walk away with an indefinate 0%-15% pretax profit.

Any CEO worth its salt should be able to leverage 30M cash into a 120M (or more) capital investment pool.  Dissolution of a company and the liquidation of its assets make sense when the returns are in the high double digits,,,not when the return is negligible to the shareholders.

This is either a case of smokescreening to keep the share prices down or a case of 2 bit schmucks raiding a JPC for pennies.

Either way,,,I'm have withdrawn my six figure bid at .12,,,,and will observe from the sidelines as the plot thickens.

And,,,If you think a BOD that has been targeted in writing for elimination are going to cooperate with the expeditious processing of their  own termination,,,Think Again.

This is going to get nasty,,,but will make for good daily entertainment.  I look forward to reading Y'alls comments along the way.

Gone Fishin,,,Your Pal,,,,EnergyInv

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