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Chris DeMuth Jr.
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"It's not given to human beings to have such talent that they can just know everything about everything all the time. But it is given to human beings who work hard at it - who look and sift the world for a misplaced bet - that they can occasionally find one." - Charlie Munger I look... More
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  • Seeking Truth From Facts – Sunday, September 15, 2013 7 comments
    Sep 15, 2013 11:20 AM

    Alco Stores Acquisition Proposal

    Disclosure: I am long ALCS.

    Additional disclosure: Chris DeMuth Jr is a portfolio manager at Rangeley Capital, a partnership that invests with a margin of safety by buying securities at deep discounts to their intrinsic value and unlocking that value through corporate events. In order to maximize total returns for our partners, we reserve the right to make investment decisions regarding any security without further notification except where such notification is required by law.

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Comments (7)
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  • J Boogie
    , contributor
    Comments (10) | Send Message
     
    The dip that ALCS took down to 14.10 or so I thought was nuts. I dont see how the board could accept the $14 offer over a $14.45 cash offer. Great buying opportunity.
    15 Sep 2013, 01:45 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (3892) | Send Message
     
    Author’s reply » Also, at worst this will make a strong appraisal opportunity.
    15 Sep 2013, 02:40 PM Reply Like
  • J Boogie
    , contributor
    Comments (10) | Send Message
     
    I've never participated in a legal appraisal before. Does that involve hiring a legal team and then managing that by yourself, or do all dissenters work together as one group?
    16 Sep 2013, 02:26 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (3892) | Send Message
     
    Author’s reply » Good question. Typically, you hire a legal team and manage that by yourself initially and then the judge consolidates the case with other dissenters, who subsequently work together as one group.
    16 Sep 2013, 07:05 AM Reply Like
  • Special Situations and Arbs
    , contributor
    Comments (489) | Send Message
     
    There have been a couple of times that I wanted to participate in an appraisal but never did because of time and cost. I would think you would have to have a decent amount of money tied up in the stock to make it worthwhile.
    16 Sep 2013, 01:30 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (3892) | Send Message
     
    Author’s reply » Yes. In my case, I've wanted a seven figure upside to justify a six figure bother and expense. If it is much smaller than that, even if it is a fine case, I would risk violating minimum wage laws in terms of my time, which of course we should never do.
    16 Sep 2013, 01:34 PM Reply Like
  • Special Situations and Arbs
    , contributor
    Comments (489) | Send Message
     
    I guess for most who don't have the means to pursue appraisal rights not much else to do but hold onto ALCS shares at this point.
    16 Sep 2013, 03:30 PM Reply Like
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