Executive Summary: Excitement over escaping bankruptcy earlier in the year has driven Imperial Holdings' (IFT) share price up to levels reflecting the $3B in life insurance policies the company owns but missing the 37% cut of proceeds taken by creditors and ongoing administration costs that eliminate the value.
Catalyst: Rights offering announced Friday, and expected within 90 days, forces shareholders to decide whether they'll increase their investment. The lack of shareholders' equity will lead many to pass on the rights and reconsider their entire position.
Overview of the Company and Thesis
Imperial Holdings is what's left of a life settlements business plan. Growth ended shortly after the Q1'11 IPO due to regulatory and legal issues, leaving the...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|