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  • CSW Industrials: A Spin-Off With A Lot Of Potential  [View article]
    I think that there are both revenue and cost synergies from acquisitions as well as synergies from the full integration of the BDC companies which were separate entities.

    The company is also a debt capacity bargain. Because it was under a BDC the debt that the company could take on was significantly lower than would be reasonable for a company in the specialty chemical business. An LBO model like one mentioned in Hooke's security analysis book points to a value north of $45. Ebit is $46m. If interest coverage ratio needs to be at least 1.3-1.5. And interest rates charged are between 5.5-6% then value of the company is between $43-55. (Subtract current debt and add back debt).

    Comps are trading at ev/ebit of 16. Which would point to a value of around $45.
    Oct 20, 2015. 11:39 AM | 1 Like Like |Link to Comment
  • Introducing The "Investing With An Edge" Series  [View instapost]
    A company with a catalyst is worth more than one without. But how much more? Wondering if you have any general rules or could give any examples.
    Oct 8, 2015. 08:08 PM | Likes Like |Link to Comment
  • CBS - Hoping For A Better Entry Point With Momentum And M&A As Key Potential Drivers  [View article]
    Shares outstanding are currently 536m or less as a result of the split-off.
    Aug 12, 2014. 11:37 PM | Likes Like |Link to Comment
  • BioFuel Energy - Day Traders Pushed The Price Above Reasonable Limits  [View article]
    Appreciate the article. Enjoy reading your articles.

    If JBGL earned $32m after non-controlling interest, assuming SG&A + salary and benefits from BIOF will no longer exist, subtracting $2m for public accounting expenses and subtracting $15m in interest expense. Earnings would be $.47/share. Cost per share is going to be (assuming only 2 shares in rights offering because I believe in the filings there was a statement about no fractional rights and to be conservative) is $7.85 + 5 x 2 = 17.85 / 3 = $5.95. 12.65x earnings. Also at 11.23x EV/EBITDA.

    Looks pretty interesting on comparable basis using this data:

    Take particular note of where luxury homebuilders are trading.

    Could make arguments for adjustments upward in value based on large amount of lots owned by JBGL and affiliates compared to other homebuilders.

    Southgate is 100% owned by JBGL (I think?). Using Zillow and the company's website to figure out what they've sold and what they have left to sell for certain communities/neighborhoods can lead to very interesting results. Have to make a projection of how long it will take to sell.
    Jul 23, 2014. 12:33 AM | 1 Like Like |Link to Comment
  • Gyrodyne Could Make For A Tasty Liquidation Play  [View article]
    Dividend note can be paid in cash if the holders of such notes wish to redeem the security and has less than $10,000 worth of dividend notes.
    Jan 4, 2014. 08:35 AM | Likes Like |Link to Comment
  • The Hackett Group Is 'Going Dutch': The Upside Potential In This Special Situation Is Worthy Of Note  [View article]
    Dutch auction is all at once as opposed to open market stock buybacks.
    Sep 24, 2013. 10:15 PM | Likes Like |Link to Comment
  • Event Driven Q&A Forum  [View instapost]
    Value of 69% CONE stake that CBB still owns is worth more than CBB's entire market cap. This implies that CBB stake after spinning off CONE is worth at least negative 300 + million. The risk is that CBB may truly be worth nothing to shareholders as they are highly levered while at the same time trying to aggressively expand by lacing fiber-optics in the Cincinnati region which is what has led to downgrades by several ratings agencies. They have been relatively successful in expanding beyond their land-line business and into wireless. The big one though is that insiders (CEO & CFO) have bought hundreds of thousands of dollars worth of shares at $3.33.
    May 6, 2013. 08:20 PM | 1 Like Like |Link to Comment