1:25 pm Saturday 26 January 2013
Roumell is the man with the right plan....
His plan puts a floor under our stock at $8.00, while holding out the real Possibility for two (2) extraordinary dividends:
$4.00 from the sale of Brazilian assets
$4.00 from the sale of Indian assets
The possibility that both dividends could somehow enjoy tax favored treatment exists...
This would still leave the corpus which would STILL be worth a minimum of $8.00.
That appears to value the "whole" company at $16+...
Sentiment: Strong Buy
Doesn't that assume all three entities can make a profit?
But, he also indicated he would sell for $10 now, right ?
I think his indication was more along the lines no less than $10.00 or the bidding will have to start at $10.00 to even start to make any sense of the IV of the company. That would be my interpretation of what he meant.
I agree those ex dividends would be considered return of Capital. Don't forget debt in your analysis.