Bill, I see your points. I just think the incentives aren't aligned with shareholders so there is a high risk of shareholder unfriendly actions by management. Their incentives aren't linked with shareholders so why would they act in a way that rewards shareholders and not them?
I think the potential for the candle business to be worth more is there but since it has been in a multi-year decline, I'd like to see some turnaround in the operations before assigning it with a higher multiple.
Asta Funding: Results Continue To Impress The Market [View article]
Hey - thanks for the comment. I was looking at the shares outstanding for a while and couldn't figure out why the numbers weren't matching up with the shares repurchased. I thought it was due to options but I guess you answered my question. This definitely looks even better now.
Rentech: Still Below Break Up Value Despite Moves By Management [View article]
There is no double counting going on but they are NET not burning cash as you suggest. The value of $3.20 a share is sum of the parts/break up of cash - liabilities + RNF stake. They expect to receive $54.4 million from RNF and burn $42-44 million which is a net GAIN of cash of $10.4-12.4 million before taxes. The present value of those cash flows is not included in my break up valuation as you suggest.
Rentech: Still Below Break Up Value Despite Moves By Management [View article]
I agree with you but it seems like they're taking some steps to return capital to shareholders. Furthermore, the $40 million cash burn is a drain but with the RNF dividend, they're running about a small cash surplus.
8x8 Sells Patent Family For $12M; Implies Patent Portfolio Value Of Up To $600M [View article]
Good article. If you/commenters are correct that there are 2 patents a family on average for 8x8, that suggests a patent valuation of $6 million/patent. It's possible, but it seem a be a very inflated figure figure. All of the comp patent transactions I have seen come out at between $100k-$1 million a patent (Google/Motorola, Microsoft/AOL, InterDigital/Intel, and others). Taking the high end of that suggests that EGHT's patent portfolio is worth $80 million not $600 million.
More than likely, there are were more than 2 patents involved in the transaction.
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Asta Funding: Results Continue To Impress The Market [View article]
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GT Advanced - Attractive Valuation But Incentive Structure Creating Potentially Damaging Strategy [View article]
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Blyth: ViSalus' Growth Trajectory Provides Substantial Upside For Shareholders [View article]
Asta Funding: Results Continue To Impress The Market [View article]
Rentech: Still Below Break Up Value Despite Moves By Management [View article]
Nokia: Patent Portfolio Valuation Range Too Great To Make Nokia A Compelling Buy [View article]
Rentech: Still Below Break Up Value Despite Moves By Management [View article]
8x8 Sells Patent Family For $12M; Implies Patent Portfolio Value Of Up To $600M [View article]
More than likely, there are were more than 2 patents involved in the transaction.
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