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OfficeMax Incorporated Message Board

  • legalbark legalbark Sep 2, 2004 7:18 AM Flag

    Another Way of Looking at It

    In my earlier post on Sum of the Parts I don't think my math was correct. If BCC is being paid $3.7 billion and it has 88 million common shares outstanding, it's getting $42 per share. So I buy 100 shares today at #31.60 and in less than 4 months get $42 a share in cash for the timber, etc. As long as the remaining businesses have a value at least equal to the company's debt, it looks like a $10 profit in a very short period of time. I know that's not how the company is presenting the transaction since they intend to pay down debt and pay dividends or do stock buybacks. Still, I think this other way of viewing the values involved here is valid.

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    • i no all...

      thank you for your meld thoughts...the great and mity truth hath is koming...the wold will no i am the all nowing...all powerful...sepember 12...i will klone myself end of month there will be millions of my december...klones will rule the wold...

      I NO ALL

    • Now,now honeybuns,settle down.I can tell someones not taking their meds and not gettin enough lately (if you get my drift).So anywho come on home to the ODP mb and will get you set up with one of those depot floozies.You can meld till the cows come home!!!!
      Sorry,folks he gets out and gets rambunctious every now and then!
      Back in the cage Oh Great One!!

    • you are all dumm and need the truth so is put hand on moniter...i use the angley tecknique to meld with become melded to give all to me...i give you no all as i do...meld with me...

      i am the truth
      i no all

      ps ...the next one who mocketh me will feel the rath of the truth...

    • I agree! What's the answer? What's the remaining part of the company worth after the timber sale and the $10 dividend if the company decides to distribute the $10 as a dividend rather than using the cash to make stock buybacks?

    • another way to look at is if bcc distributes $10 in cash after the sell of of forest products then you are getting omx plus 10% forest products for $22 per share. the question is whether omx is worth $22 compared to staples and offfice depot?

    • Atlantahemant- I think you've undercounted. Taking your approach, after paying the debt from the proceeds you're left with $1.4 billion in cash PLUS the Office Max/Business Solutions business PLUS the 10% retained interest in the LCC that is buying the timber and paper businesses. Whatever all of that is worth divided by 88 million common shares is what the remainder should be worth per share. I asked essencially the same question some time ago in a message on this board and no one has come up with an answer.

    • the way i look at this is 3.7 billion sale proceeds from sale of assets less 2.3 billion in debt repayment so 1.4 billion is the price for office max. is that a discount or premium to the inherent value of office max?

    • are a poor little man with nothing to do but boast of money you claim to have made...i no need help...your wallet is have a void in your life...come and expericnse the POWER of the meld...put your hand on the can do it...

      i am the truth
      i no all

    • Getting $42 cash for part of a company selling @ $32.
      Just might be some $$ to reap there.

    • WT...

      do no mocketh my language is pure...not korrupt like yours...i kreated have a final chance to repaint...or i will show you the angley thing...the spok meld...the oby one kenobe forse...go to ODP board and see what I did to akron and vita...they mockethed me...i melded with them...they are my all for me...repaint and see the lite...because

      I NO ALL

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