Estimates have been revised down. Assuming the economy gets better not a sure thing with the payroll taxes expiration but I am still optimistic, sales will not deteriorate more. With a multiple of 10 that's a buy out price at $21. His first offer will not the best so 18-19 is my target and I will sell at the first offer. Who knows if he can get financing at higher price. On the other hand retail sales were better than expected so the management will fight for a better offer.
@$18 NEWCO would need to be able to service $4b in debt if Schulze is part of deal & he rolls over his equity
deal only works if equity puts in more $ thus reducing their returns
if Schulze not part of deal debt or new equity has to go up $1b