Daily Record FINANCIAL NEWS &
MONDAY, MARCH 6, 2017
Vol. 104, No. 080 • Two SecTioNS
35¢ www.jaxdailyrecord.com
Analyst: More CSX gains from Harrison on CSX from “hold” to “buy” and said the stock could go even higher if Harrison takes over. “We have increased our ‘blue sky’ target on CSX to $60 from $48, reflecting our view that the entirety of potential profit improvements may be achieved inside of three years vs. our previous five-year assumption, and with better FCF (free cash flow) than our previous thinking,” Mehrotra wrote in his report. Harrison has a reputation as a cost-cutter at railroads and Mehortra expects him to target a 58 percent operating ratio at CSX within three years.
The company’s 2016 operating ratio — operating expenses divided by revenue — was 69.4 percent and Ward has been targeting a mid-60s ratio for the Jacksonvillebased company. CSX says Harrison is seeking a total compensation package worth more than $300 million over four years. The total is so high that CSX is planning a spe-
cial meeting to allow shareholders to vote on it. However, as Mehrotra previously pointed out, CSX’s market value jumped by more than $8 billion after Harrison’s interest was revealed, so many investors will see the big pay package as justified. (Of course, the 1,000 managers that CSX is laying off to cut costs probably see it differently). CSX has 926 million outstanding shares, so every $1 gain in the trading price increases its market value by $926 million. If CSX’s stock reaches Mehrotra’s “blue sky” price of $60, that
The hats on Chip Bachara’s law office wall track his early career from graduating from the University of Florida with a bachelor’s degree in building construction and working for JEA, The Haskell Co. and Blosam Constructors. He founded Bachara Construction Law Group, whose office is in the Wells Fargo Center.
Sharing career field with father Bachara chose legal side of business instead of being contractor
By Caren Burmeister Contributing Writer Chip Bachara built his reputation as Jacksonville’s Construction Lawyer of the Year from the ground up. Bachara has been swinging a construction hammer since he was 10 years old, working every summer for his father, Henry Bachara, stacking wood, painting and nailing down roofing felt paper. “I intended to follow in my dad’s footsteps and be a builder,” Bachara said. “My parents wanted me to go into anything but construction.”
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They didn’t need to worry. Bachara was proud of his father’s reputation, which earned inclusion in the Florida Housing Hall of Fame. But Bachara had bigger plans: construction law. “I knew that’s all I wanted to do,” he said. “I wanted to do commercial construction and for a bigger company.” A board-certified construction lawyer and founder of the Bachara Construction Law Group, he has been named multiple times in Florida Trend’s Legal Elite, Florida Super Lawyers and Best Lawyers in America. In 2012 and 2017, Bachara was desig-
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would be a 63 percent gain from the Harrison effect. Mehrotra officially set a $56 price target for the stock. “Our revised $56 target is lower than our blue sky scenario, reflecting some risk of an unsuccessful activist campaign (an area of investor interest currently),” he said.
CSX expects $175M in savings from layoffs
CSX said in a Securities and Exchange Commission filing last week that it expects at least $175 BASCH CONTINUED ON PAGE A-7
Hyatt to add ‘grab and go’ station
Photo by Caren Burmeister
If you’re still wondering why investors may be willing to approve a big pay package for potential CSX Corp. CEO Hunter Harrison, Deutsche Bank analyst Amit Mehrotra provided some insight last week. CSX’s stock jumped as much as 33 percent to $49.13 in the days after news leaked that Harrison, former CEO of Canadian Pacific Railway Ltd., has his eyes on succeeding Michael Ward as CSX chief executive. After meeting with the CEO of hedge fund Mantle Ridge, which is working with Harrison, Mehrotra last week raised his rating
nated as Jacksonville’s “Construction Lawyer of the Year” by Best Lawyers, a peerreview publication. The economy was suffering when Bachara graduated from The Bolles School in 1978. Despite his parents’ wishes, he got a bachelor’s degree in building construction from the University of Florida. Four hard hats hanging from his office wall remind him of his early jobs. He briefly worked for JEA, then accepted a project management position with The Haskell Co. Within a year he was accepted at Mercer University School of Law. BACHARA CONT INUED ON PAGE A-8
Apparently responding to customers’ needs for a meal on the run or a snack to stash for later, the Hyatt Regency Jacksonville Riverfront is working on a lobby “grab and go” food station. Plans show potential build-out for a market and coffee area in 4,000 square feet, which includes upgrades to the buffet and kitchen. The location would be next to the dining room near the elevators for the ease of guests. The hotel isn’t talking about it yet. “We look forward to sharing details when they are finalized,” said spokesman Joe Wolf, a senior account executive in strategic communications with Dalton Agency. Such amenities are common in many hotels, including the Hyatt Place brand, where the 24/7 Gallery Market offers packaged salads, sandwiches, pastries, cookies, beverages and other options. No contractor is listed for the $624,292 project at the Downtown hotel at 225 Coastline Drive. The architect is Jonathan Nehmer + Associates Inc. in Rockville, Md. The company declined comment. For a look at what to expect, consider that the Hyatt Regency Minneapolis features a Market, for “when you’re on the go and don’t want to sacrifice quality,” says the hotel’s website. The hotel site says the lobby-level Market features “quick, yet satisfying menu options in a seasonal, deli-style concept,” along with snacks and Starbucks coffee and other beverages. That Market is open 6 a.m.-8 p.m. daily. Food prices were listed at $8 and below. Breakfast items include pastries, oatmeal, English muffin sandwiches, egg bakes and more. All-day food choices include sandwiches and wraps, salads, soups, pizza and sides, MATHIS CONT INUED ON PAGE A-11
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