If they remain on track when they report 3Q the stock should be back in the mid-6s and move towards 10 as they reveal a growth resumption strategy early next year when they report 4Q.
So what are you saying - is this stock a Buy, Hold or Sell?
EBITDA is inflated this year due to lack of spanding, but assuming it goes down roughly 30% when spending returns on the lower revenue base it should still be in the realm of $70M implying we are trading at 4X EBITDA at the point of growth resumption and still generating substantial free cash flow. The technical overhang from selling shareholders is still a ways off.
There seems to be an unusual price gap with the last trading price in Israel which was $5.49, yesterday. The market in Israel is closed today. Why such an unusual gap in the price here -- especially on such light volume? Any thoughts.
It would be $50M plus the $50M in free cash flow they should generate over 2H14. Their margins sill be pressured next year as they spend again to grow the top line but while EBITDA may go down 30% from 2014 levels it's not like this is a capital intensive business. There's plenty of free cash flow.. question is what will they do with it?
What kinf of acquisition would they do for that little amount of money ? They were simply running out of cash I guess.
I will say that there are two times when a company does a convert. When the stock is overpriced and when they stock is low and the company is nervous. This is the latter but the high premium helps.
It converts at a greater than 50% premium as opposed to the normal 25-35%. You take the money when it's there.. they probably want to do another acquisition to diversify.
It says the story is not true. One can read it as there was no way the company will accept $500M. I would say more like $900M to $1B would be more accurate.
Sentiment: Strong Buy
An Israeli financial news website on Wednesday reported that New York-based media and Internet company IAC/Interactive Corp has offered to buy Israel-based Perion Network, but a source with knowledge of the matter later said the report was untrue.
Israel's Calcalist, quoting unnamed market sources, said that IAC has offered more than $500 million for Perion, whose technology helps developers distribute apps and make money off them through advertising.
IAC had no official comment, and an official at Perion also said the company was not commenting on the report.
A source with knowledge of the matter, who spoke on condition of anonymity, later said the report was untrue.