well hope you keep it up hedgebets - these responses make a lot more sense than your Fibonacci commentary.
I think someone like Cisco looking to lower their tax bill could make an acquisition bid or, a reverse merger from a PE firm like Avaya owners...
I can't imagine anyone in JDSU related market like FNSR, AVGO, IIVI etc. to make a profitable play with NOLs.
Thanks, I have my moments...when mask comes off, and inner fool is kept at bay...You know, as well as I do, nothing brings out an army of lawyers like corporations using creative accounting that stretches boundaries trying to sidestep tax law...except maybe, a contested election!!!
wow... thats impressive hedgebets - very lucid response
The closest that I can think off is Icahn and XO Communications takeover and that is mired in lawsuits now.
That's because Section 382 of IRC limits a corporation's ability to utilize existing NOL carryovers once the corporation experiences an "ownership change"...it limits the amount that may be used annually to a percentage of the entity value of the corporation at the date of ownership change...usually around 2-3%...So worrying about income offset becomes a huge factor when considering continuity-of-business requirement...and then there is cancelled creditor claims, built-in losses, the presence of nonbusiness assets, stock redemptions, and other factors...the best way to avoid Section 382 is the "bankruptcy exception", Acterna comes to mind, a "toll charge" may cost some interest deductions and another ownership change could wipeout NOL altogether...hence, the dilemma and our split strategy being applied to try and combat various obstacles in the quest to realize built up NOL before it expires, typically 20 years...
you would be surprised how difficult it is to monetize NOL.
I can't think of any recent examples where NOL was valued in an acquisition. Do you know of any recent tech acquisition where this was valued as a net positive?
Re: Who cares how much they have, as long as they get that lazy board off their a$$e$!
Sandell Management may only have 2% but I would venture to guess they have a lot of allies. I can't see other major institutional investors being complacent and satisfied with over 8 billion dollars in tax credits being valued at next to nothing. It would not surprise me that extracting value from these tax credits is the number one priority for the board, and if not a very high priority. We are not talking about peanuts here and I can only see the board being under constant pressure. Could I see board members / senior executives fired over this ... absolutely. Too much money at stake.
They can now short 2 companies for the price of 1. Same great management in charge at 2 rolling disasters.
And Sandell Management has such faith in $19-$26 breakout value that they hold a measly 2% stake...
"[A] true pilot must of necessity pay attention to the seasons, the heavens, the stars, the winds, and everything proper to the craft if he is really to rule a ship"
MiniMax String Positioning...7:05...1815.25...1:45...1869.75...4:00...1848...11:50...1891.75...
And Then, Backscatter Quantum Combinatorial...
resident lunatic...today's Cycle Count is labelled as Star Justice Via Crucis Moon Magician...and there is a Tempest in the water, named Gonzalo, on a Sea Venture...headed for Prospero while we Masque the Red Death!!!
You're a little late to the party,
and need to get up to speed!
You can't tell who the players are,
without a score card ... oh, and
also a little math.
resident lunatic. He has 10 or more aliases he uses. It's very crowded in Hedge's head. Lol. We still like him though. If you can wade through all the jibber-jabber, he's actually a pretty fart smella. lol.