Yuanxi Zhang
Long/short equity, value, special situations

Florida Gaming Corporation: The Intrinsic Value Of Common Shares Is 0

Thesis

Following the bankruptcy auction on March 25, 2014, market participants valued the common shares of Florida Gaming Corporation as much as $6.26 million at one point. However, as we dig into the details of the sale, we are very confident that the common shares will be wiped out. As the deal is likely to close in one month, we recommend exiting long positions or initiating a short position in the stock.

Details of the Asset Sale

Florida Gaming Corp (OTCPK:FGMGQ) filed for Chapter 11 bankruptcy on August 19, 2013. On October 23, 2013, Florida Gaming Corp decided to abandon a reorganization and planned an asset sale instead. On December 18, 2013, the court approved the $130 million

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