NET ASSET PER SHARE IS $2.05, still positive earnings, PE 8.35. so how did they decide to sell at $1.70?
Daily Swap Rate was 4.95% on 18th of July
They must have looked at their balance sheet too. When I buy stocks of a company, difiintely I'll look at balance sheets. Debt and cash flow are 2 main things that I will look for. Anyway, in my portfolio I'am more than happy to keep few aquistion plays. One thing I never kept stocks in my portfolio after aquistion. Instead rotated them to better places.
They must have looked at their balance sheet too. When I buy stocks of a company, difiintely I'll look at balance sheets. Debt and cash flow are 2 main things that I will look for. Anyway, in my portfolio I'am more than happy to keep few aquistion plays. One thing I never kept stocks in my portfolio after aquistion. Instead rotated them to better places.
They saw the $1.8 billion FLOAT and couldn’t contain themselves …must have that they said
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Sorry l can't understand this float. I can understand the balance sheet. My portfolio filled with strong balance sheets. Do you think air and CVT also come up with some sort of aquistion story. Some private equity buy, develop and sell them to another party. I used to work in one place. After I left ownership has changed thrice. Under a good management we can expect growth. If ownership passes to the wrong party stock prices can go down rapidly.
NET ASSET PER SHARE IS $2.05, still positive earnings, PE 8.35. so how did they decide to sell at $1.70?
Daily Swap Rate was 4.95% on 18th of July
The problem is the shares were trading around $1 so it is pretty optimistic to hope an acquirer will pay double the current share price so it can buy at NTA per share. The calculation of the NTA per share is not complete science. I doubt the acquirer is planning to do a "1970s Ron Brierley" and sell the assets one by one to unlock the hidden value being the difference between the sum of the parts of assets and the acquisition price.. I am a shareholder in Arv and I plan to hold on in the meantime with the expectation of receiving $1.70 per share near the end of the year. I could accept $1.60 now and remove the uncertainty of if the bid will proceed but would lose 10c or 6.25 percent for around 6 months - that is 12.5% annualised. If it starts to trade over $1.65 I will think about selling at that point.
Reply With Quote
Originally Posted by flyinglizard
Bookmarks