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Strong Buy
WSJ today page C3 Maureen Farrell writes "Blank Checks" SPACs Look for Bargains.WSJ today page C3 Maureen Farrell writes "Blank Checks" or specialty purpose acquisition companies (SPACs) Look for Bargains. Wilbur Ross is pictured to use Nexeo Solutions (TPG has 35% stake) to roll up other firms. These types of public companies are making a comeback as investors see opportunity for bargains in PE sales per M Farrell of WSJ. Former Blackstone Group Partner Chinh Chu and Fidelity National Financial Inc. Chairman William Foley are seeing to raise 1.1B in new offering CF Corp to target fin tech co. BLANK CHECK COMPANY are on the comeback and I cannot think of anyone more valuable than a billion tax benefits. TPG has its own SPAC Pace Holdings. NOVC is a SPAC with billion dollar tax shield. Even George Soros Fund Mgt and activist HF Corvex Mgt are putting 510M in the venture. Surely x Soros Portfolio Mgr Jeff Eberwein can make a few calls vs letting LSVM almost 1m investment in NOVC circle the drain. How would he like to have one with Billion Dollar Tax Shield aka DTA. NOVC DTA $682m NOL + its hidden Unrealized Tax Losses est 225M (these securities still have value) are two tax benefits completely reserved against by GAAP yet they provide an important 3rd leg of the stool for NOVC future. Last yr SPACs raised 3.9B NOVC has almost 25% just in the DTA. Jeff Eberwein knows it which is he used Lone Star Value Mgt to buy up almost 3.3m shares of common last yr (May to Oct 2015). The BOD must have a deal with Sr. Debt a done or near done. There is to much future value compared to the small $17M market cap of Sr Debt see 10k, the 88M face is not applicable to the $17M FMV. What ever deal they strike there is plenty of value to eliminate the restrictive covenants on Sr. Debt. Once done NOVC shareholders will have tremendous opportunities to partner with folks like Wilbur Ross and Nexeo Solutions or CF Corp. IMHO NOVC may have already convince Sr Debt trustee that a platform with hidden value is better then a lengthy tug or war. Alternatively they have clear understand or evening MOU. Why take debt that matures 2033 and carries a great rate < 4% and make it immediately due and payable. MAKES no sense. Leg 1 Portfolio is worth a great deal more than GAAP, Grant Thornton disclose. SM55 ID some marketable securities are investment grade, the OC Bonds are worth at least $27M and are NOVC shareholder value, the MS A-F-S value on NOVC balance sheet is grossly represented. The A-F-S is carried at 2.2 M yet has produced over 6.5m every yr for last 8-10. Tell me that is fair market value accounting. + Leg 2 Tax benefits hidden under GAAP, Grant Thornton and NOVC Board provide an extraordinary opportunity for shareholders of NOVC future see above. + Leg 3 Recap of $17M FMV Sr Debt. And relief of restrictive covenants add up to great partnerships with the likes of Soros, CF Corp, Wilbur Ross Nexeo Solutions READ WSJ today 5/19/16 C3 for NOVC new future. All IMHO do your own due diligence and share. |
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Msg # | Subject | Author | Recs | Date Posted |
145229 | Re: WSJ today page C3 Maureen Farrell writes "Blank Checks" SPACs Look for Bargains. | wavb | 3 | 5/20/2016 4:29:47 PM |