Given the ~$26M offered and ~$5M in book value, vs. the 2M shares (4M after dilution), I would expect a share value of about $8.
The share price was held artificially low by a recent press release that said that JBOH could go out of business at any time (see http://www.thestreet.com/_yahoo/markets/matthewgoldstein/10151591.html and http://biz.yahoo.com/prnews/040407/law091_1.html) Obviously, with this influx of cash, that risk dissapears. It was obvious at the time (to me) that they were intentionally trying to drive down the JBOH price for unknown reasons. Every company has risk factors and is required by the SEC to list them in annual reports; why point the spot light on this company when a large % of companies have the same risks?
Given that they were losing money on the brokerage side, but making money on the clearing house side, I would expect that they can do a lot with this money by focusing on clearing.
They can also pass much of the money direct to the shareholders as cash, since they would no longer have to maintain a large amount of cash for maintaining a deposit to asset ratio.
Obviously, there is some risk, since the deal could fall through (unlikely since it is beneficial to both companies, and not at risk of anti-trust concerns) and there is a risk that the board and CEO mismanage the procedes instead of returning them.
I guess that I'm surprised that the stock hasn't hit $6 a share yet.
I'd buy more now, except I already have several thousand shares and am not looking to take on more risk. I was obviously much better off buying before the price went up then now.
Good luck longs and keep the faith. Ignore the drivel from the shorts and manipulators trying to scare people.
I did not see anything in your post about the SEC. They are going to spend some of that cash to settle with them. I CAN'T UNDERSTAND WHY ANYONE WOULD LOOK AT THE RISK/REWARD OF THIS STOCK AND BUT IT. Maybe that is why it has not went up today.
Scott since you are new here let me let you in on something. This company has been stinking it up for years and there has been a large about of STUPID longs who cannot read or understand financial statements and or press releases.
Since you obviously CAN read and understand financials I will tell you there is absolutley no change to change these IDIOT longs mind about JBOH. They are still living in the JBOH Glory days and cannot accept the fact that JBOH is all but bankrupt.
I have been trying to save people from making a mistake here for years and as you can see they just don't get it.