Premier Exhibitions (NASDAQ:PRXI) owns a collection of over 5,000 artifacts from the Titanic. The collection has been appraised at $189 million and has received a letter of intent (LOI) to sell the collection for that amount. Reasonable people can come to different conclusions about the relevant tax rate; however, our view is that this can be done in a tax-efficient way. We are assuming proceeds of right around $189 million or $3.94 per share. With the stock trading at $2.62, you are not paying anything for the remaining businesses.
To learn more about Titanic artifacts, consider reading Titanic: The artifact exhibit.
Disclosure: I am long PRXI.
Additional disclosure: Additionally, at one point we were also looking to bid on the collection, but we are not insiders and do not have any insider information about the process. 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.