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NCI Building Systems Inc. Message Board

  • ncswillfly ncswillfly Oct 26, 2009 8:08 PM Flag

    250,000 preferred shares for $250,000,000?

    "On the Closing Date, the Company closed the Equity Investment and issued 250,000 Preferred Shares in the aggregate to CD&R Fund VIII and CD&R FF Fund VIII for an aggregate purchase price of $250.0 million in cash."

    $250,000,000 for 250,000 preferred shares? How is that work out? Anyone can expalin? Is each preferred equal to 1000 shares?

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    • I think that a conservative price estimate of the company is $3,20... that is based on comparisons to peers that I follow and I have posted a multitude of examples of them.

      Even today... while not a peer but yes a cyclical I posted about BEE... it trades at $1.80... if BEE is worth that then this one is worth $10.

    • The company was shoved into this situation by loan covenants. Until the very end it had enough cash at hand to pay the totality of the bond holders and make payments on the loan. So cash and cash generation was not the issue...

      The reason you will not find any other like this is that no other that I know was treated with this much contempt by its lender... it is a shame.

    • Dude, if you spent a little more time reading (or skimming) Form 424B3, filed October 19, 2009 and a little less time posting...

      Before saying NCS will fly, it would be wise to understand the deal. This board has turned into a love fest since davef9699 left. Not that this should be construed as invitation for his return, but a bit more balance would be nice.

      Around 1.75 would an attractive starting position. Could at least trade with great confidence from there.

      • 1 Reply to drink.guinness
      • I have read the filings and if you note my quote came directly from the filings with the link to the filing provided in the very same post. And I do very well understand the deal as it is been known for months and in several of my previous posts and other's posts this matter has been extensively discussed and indicated that those shares can not be converted for 30 months which is a long time from now and that it is not likely that they will even be converted then and that those investors would want to hold on to those shares hoping that the company will be sold off someday.

        My only point from the post was for somebody to explain why the numbers mentioned don't match and whether it was a typo or in the case of preferred here one share means much much more understanding this is all trying to learn the technicals involved and nothing more since we already have known the actual number of shares involved.

        You seem to be upset that Dave is gone. You are wrong; He is posting under different IDs and you know it!!!

        As for my posting "too many posts" I don't believe I post more than a dozen posts today. That is a far cry from some who posts 50 or more a day at times. But since it seems there is an objection I'll try to limit my posts to around half dozen or less per day. Besides I believe right now the main thing dictating the direction of the stock price is those hedge funds and what they do with they remaining 20 million or so shares.

    • $1 par

    • Short it one more time! ROFLMO

    • I thought you were the resident expert? It's beyond me

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