For purposes that will soon become apparent, we'll call today's column Herb Lite:
Out of sight, out of mind:
While nobody was looking (because nobody cares anymore), former highflier
yesterday dipped, albeit briefly, below 1 before closing at 1 -- its lowest close ever. Much of the selling in recent weeks occurred after former Chairman Keith Barish disclosed in an
filing that he was selling 10 million shares, roughly half of his 22 million-share stake.
Was Barish really bearish, or was he getting out while the getting was good?
Hard to say, but a spokeswoman says the company is on track with its recently announced reorganization. Menus have been changed in several locations and the unit in Miami has been completely refurbished.
Fine, but where's
At some point yesterday (thanks
for the heads up)
market value for the first time passed
($20.7 bil vs. $19.7 bil). Its auction site also competes with the newspaper classified sections of the likes of
($7.9 bil) and
officials hadn't been available for comment while I was working on an item about their company that appeared here
yesterday. The item suggested McDermott will use its bushels of more than a billion in cash to buy back its own stock and/or make a run at the 35% of McDermott sub
J. Ray McDermott
it doesn't yet own. Contacted yesterday, McDermott spokesman Don Washington said the company believes that its primary use of cash would be to create growth for McDermott, either through acquisitions or "internal initiatives."
He added that while reinvesting in the company through the purchase of its own stock "would create a short-term improvement in earnings," it wouldn't create "an opportunity to expand its existing businesses or grow into new areas."
Would the purchase of J. Ray McDermott stock constitute an acquisition?
"In all honesty, either one of those are possibilities," Washington said. "Obviously, the relationship between the two companies
J. Ray McDermott and McDermott has been an issue for some time. One option certainly would be to recombine them, but there is no indication that that will happen."
Funny, that's not what investors say they've been told.
Come one, come all:
heard from anybody at
, or from any bulls in the money management community, with their opinions about why the HMT bears will wish they had never bet against the company.
Herb Greenberg writes daily for TheStreet.com. In keeping with the editorial policy of TSC, he does not own or short individual stocks. He also does not invest in hedge funds or any other private investment partnerships. He welcomes your feedback at
firstname.lastname@example.org. Greenberg writes a monthly column for Fortune and provides daily commentary for CNBC.