This DD can make or save you money. However, I have to do some share transition first on Tuesday before I reveal the DD. I think big boys and Cerberus know it and retails will realize it later after the tender.
Stay tune on Wed or late Tuesday for this eye openning DD that it is very obvious if know some math and some market experience. But nothing is 100% and things can go either direction at any time.
Yes.. I understand about double D.. but what are you talking about? Like the other reply said, why not keep it to yourself.. in the interest of 'don't talk about it ... do it' as my first boss back at the university I was sent to work for in Jr. High used to say. It does seem to me that big things will be happening for this VALU company. Value is where "it will be" too in the next few years! Value oriented genius is about to kick in me thinks.. at least some great transitional and re-inventive thinking.... and when the stock goes out of penny status ~ back above five bucks.. Katie bar the door! Institutional investors will not be bound by rules to not be in. Margins about to improve, big logistics and managerial overhaul about to begin... may take some time, but these are known for moving fairly quickly - Cerberus group, when they have a stake like this.
You have a good brain.
It is simple. SVU used to pay about $140 M of interest every quarter beside other liabilities like pension.
Most liabilities are gone and if SVU is halved then $140 share become $70. However, SVU is refinancing it about $3 debt (instead of $6.5 B) and of course lower interest rate. At 5%, SVU pays only $37.5 M per quarter and that is a huge saving. After the sale, SVU will show a huge capital loss. That means no TAXes for long time. And of course no dividend for a while to save money.
The new SVU compare to 1/2 old SVU, will save about $70 M per quarter. That means if new SVU business does not improve compare to current SVU (1/2 of it), still SVU saves at least $50 M per quarter from lower interest rate and zero taxes. That is about $.23 /share. Now if SVU business improves (there is no reason after loser part is gone) then SVU can report over $.50 per quarter in average. SVU can be traded over $10 in a few quarters after this deal is done.