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Pep Boys - Manny, Moe & Jack Message Board

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  • daninfw04 daninfw04 Jan 22, 2009 2:48 PM Flag

    Ths GuY Is Dangerous

    Let me go in to more detail. I understand enterprise value and hitorical calculation. The problem is the idiot at Seeking Alpha. He calculates what PBY would be worth enterprise value wise, but then calculates that AAP would only have to issue 5 million shares and no cash and AZO just over a million shares and no cash. AAP would have to issue about 15 million shares not 5 million shares. This guy is long in PBY as I am butcontinues to spew out inaccurate informaion. I hope AAP doesn't offer just 5 million shares and the BOD's take it as then 99% of the people that ever bought PBY in history would lose money....this guy needs to proof read his stuff before he posts it. I can tell you AAP would buy this company in a minute for $3 share in stock.....even if the guys running it are from BBY. DaninFW

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    • You are working the math backwards as if the new entity would not have any value gain. Keep in mind that the EP of the aquiring company after the aquisition would be existing+aquired EP. You get shares AFTER the merger (new EP) not BEFORE.

      • 1 Reply to briskit44
      • This is my last post on this subject. If AAP issues 5 million shares to consummate a merger and AAP is selling for $32 a share on that date, that's $160 million in stock issued for 50 million PBY shares. That gives each current shareholder the equivalent of $3.20 a share. Enterprise value has nothing to do with it. This is not $8.60 or $9.00 for each of your shares. AAP would probably adjust their cost basis based on enterprise value but PBY shareholders would get screwed. DaninFW