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Southwall Technologies Inc. Message Board

  • alexalekhine alexalekhine Oct 7, 2011 9:32 AM Flag

    Goodbye, Southwall, It was nice Trading You

    SWTX being taken over by Solutia for $13.60 per share

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    • I suppose this isn't much of a surprise to any of us but I'm still disappointed in the price. I think SOA is getting a great deal but no reason to raise much of a fuss since the insiders own 2/3 of the company give or take. Good luck to all.

      • 1 Reply to spinaned
      • The price was depressed in part, it seems, by the
        preferred stock and the accumulated dividends).

        With 5.8 million shares outstanding at $13.60, the "nominal" acquisition
        price is $78.9 million.

        The press release says that it is for $113 million altogether.

        That is HUGE slug of dilution.

        The preferred stock was worth $4.8 million, and I estimate that it had about $4 million of dividends that were "in arrears" so that's a total of, let's be generous, $10 million.

        Fully diluted shares in the 10-K is listead at about 7.3 million shares

        7.3 x 13.6 = $100 million. Add in $5 million for the preferred dividends and you are almost there.

        aa

    • why is it trading higher? Wild, I stuck through it all, you think CYAN is next? Congrats Alex, someday we need to have a beer .

      • 1 Reply to southwalled
      • I sold most of my position in the spring around the $12.20-$12.50 level because of the ending of the contract.

        I had a stub position that didn't make much difference. After 4 years of trading the stock I think I averaged about 20% annualized return on capital. Mind you it was not strictly an investment for me. I did alot of trading, with periods of inactivity interspersed in there when it wasn't doing anything.

        See you at PLNR perhaps!

        Actually, at $1.75, PLNR is selling for considerably less than the value of working capital and only a smidge above the level of working capital if inventory is assigned zero value.

        aa