Stock slid under a dollar briefly today for the first time in a very long time (early EVI days).
The company is a Zombie - undead for now. Can shuffle the decks and service debt (for now). It is just unable to reduce the debt to maneahable levels or generate the sort of earnings that makes the debt irrelevant.
Add the value of all the business being offered (including lift and TRS). Maybe $4-5B. Not even close to covering the debt.
McK transformation started about 3 years too late. Some of the work is sound but it will take time and a lot is yet to hit the balance sheet - if ever.
Operational capability is fragile. Good people are being poached.
Competitors smell blood and are taken no share everywhere.
Technology is starting to load the k very happy le and R&D (with the exception of RSS) has basically been idled.
The portfolio was never coherent - landlocked mostly, and both TRS and lift In structural decline.
Some form of administration is now inevitable. This won’t be a great outcome for shareholder losers obviously, but it will de1burden operations and provide some relief for the people in the field.