Well for sure the target should be more than 4.50 if the loss carry-forwards are as big as posted below. So, say 2.00/sh for that benefit, plus 3.50/shr in cash, patents, and the business. That is 5.50 per share on what would be still a conservative estimate of the total value to the right buyer. All this is my opinion of course, but at 5.50 that's say approximately 500M total outlay before any of the subtractions.
5.50 sounds mighty fine to me.....
Thank you.......so the acquiring company can write off the loss for a long time...
sweet deal huh!! a billions equates to 340million in tax savings....OCLR could sell it
for $100 mill....equates to $1 in stock value ...right??
Sentiment: Strong Buy
I'm guessing Koch or fnsr....Fnsr is a aprobable due to they could get OCLR out first on the cheap maybe $5-7 and than go after JDSU before Koch does.....if they do JDSU first OCLR will pop and it will be more expensive M&A.....Csco is an outside shot Koch and Csco could really gain value by getting both JDSU and OCLR NOL carryforwards
The accumulated deficit is an indication that there is a huge tax loss carry forward. Maybe this number is somewhere in the financial statements.
The IRS has some complex rules about how and when this tax loss carry forward can be used so it would need to be structured properly in an acquisition.
To the extent that this tax loss carry forward can be used then it is part of the financial value of Oclaro in an acquisition.
There's probably $3-4/share value in just the accumulated shares! Considering that, this company is probably easily worth 6-7$ to the right buyer. Thoughts?
@gray1808 1.2 billion in accumulated deficit...what does it mean??
Sentiment: Strong Buy
The accumulated deficits are huge and can be transferred to an acquiring company under some complex IRS rules. I found this note in the OCLR financial statements.
"As of December 28, 2013, we had an accumulated deficit of $1,250.6 million."
Open ended buys - 7M shares short, probably shorts are scared that a buyout is coming, they are covering in advance - or at least the smart ones are. This thing is going TO DA MOON!!!!
Uptrend, and someone(s) are accumulating. Can only mean two things....YEAH!!!!!! Shorty is giving up, or we are going to get BOUGHT!!
My original target for a buyout was 4.50. That's for the tech, the cash, and the customers. Now, however, there is the tax implications of the past loss carry-forward. I don't know the value of that...does anyone on this board have any numbers we can use to calculate this to a potential acquirer?