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China Education Alliance, Inc. Message Board

  • jdt115 jdt115 Jul 14, 2013 2:21 PM Flag

    CEDU Going Private Offer by Executive Management?

    Guys,
    It appears that the Senior Executives offered to take CEDU private at $7 per share or a 20% premium over the current price at the time. They are saying the value of the company is $129 million although I find the $7 price tag to be more like $85 million based off the current 11.85 million shares that Yahoo is showing. Either way we are looking at a company that currently has $53.4 million in cash and $35 million in debt. This means they have roughly $18.4 million in cash if they were to pay off their existing debt. This is an extremely fair offer from this Executive team and one that CEDU should take now. The real concern here is if Mr. Yu tries to do the same exact thing at CEAI. Even If he decides to offer a 50% premium over today's price of roughly 40 cents we all still lose big and he and his new management team/owners will walk with what appears to be $70 million in cash and no debt. I would think that they would need to buy this company for the real value of the company which I would think is at least $60 million if you look at comparisons such as CEDU. Heck, they may even be worth their entire cash value if you look at the value that CEDU is getting for their company based on their current cash value. They do make a profit and have growing revenue but it really isn't that great of a number if you look at it closely. I really hope he can be stopped before going private and stealing this company away from us investors? My guess is that they are looking very closely at the option of going private just like CEDU is about to do. Dealer and Harry, Please research this a and give me you thoughts? Thanks, JDT

    Sentiment: Hold

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    • Look at shareholders problems of YONG! BV of over $10, cash of 5? and the BOD are trying to take it private for about $6.69 a share. EPS of over $2! Got to be on guard for such a move by CEAI in the future!

      Sentiment: Hold

    • I think the buyout terms have to be fair to the existing shareholders. If they are not then the management is trying to defraud their own investors. If the management makes an offer lower then the cash per share; it is not a fair deal! It is just plain commonsense. It represents that the management is trying to swindle its shareholders by attempting to do such an offer. It pretty much black and white since you can verify the prices and the offer! I will not go further into it since offers below cash value per share do not exist that I know of.

      Sentiment: Hold

    • I checked NASDAQ's website and it shows 17.6 million shares outstanding and a market cap of around $113 million right now for CEDU which means the value and offer of US $129 million by the current senior management team is correct! It also looks like they have $53 million in cash with no debt. Last quarters profit was 1.9 million net. If CEDU is finding a way to finance this deal it would sure be nice if Mr. Yu would do the same? Based off this valuation by CEDU I can't see any reason why we could not get at least $6 per share which would be a current valuation of $63 million which is less than current cash on hand with no debt. I'm fairly certain most of us would take $6 per share versus the 38 cents it currently stands at today. This would assume that CEAI is real and that they really have all the money in the bank that they claim they have. I hope something happens fast as I think all of our patience is running low. JDT

      Sentiment: Hold

    • IMO they divided their net tangible assets on their outstanding shares the number is 7.12$ per share in the case of CEAI the number would be 7.76$ without adding the 3.16$ of the 3 schools,if we add that we would have 10.92$ per share, are they going to buy the company for that number ???????

      Sentiment: Hold

 
CEAI
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