Seeking Alpha
Editor's notes: With potential roadblocks to the privatization now in the rear-view mirror, the deal is set to close within a few months. Investors should be able to capitalize on a short-term gain.

Editors' Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

Executive summary

  • NTS Realty Holdings' new merger agreement leads to 8.5%-15.0% upside if closed.
  • Lack of financing condition and favorable termination clause deserves higher odds to close than the current market price implies.
  • The transaction will be processed on an expedited process. We expect the deal to close in late May.
  • I recommend a long position in the stock.

_________________________________

Thesis

NTS Realty Holdings (NLP) announced that it has reached a preliminary settlement with plaintiffs regarding its go-private deal. A conspicuous change in the merger...

Only subscribers can access this article, which is part of the PRO research library covering 3,775 different stocks.
Growing numbers of fund managers and other investment professionals subscribe to Seeking Alpha PRO for equity research that is unavailable elsewhere, so they can: