Company getting a $4.18 settlement in cash/per share tax-free
Plus they already have some cash on balance sheet and no debt. Stock should at least get to $4/share based on this. They already said they would pay a big chunk of this out to shareholders. What do with the rest? We'll see, but stock still a buy up to $4 for sure.
I see an NAV of around 3.88 a share when adjusting for Bianco's bonus for the settlement (up to 10% of settlement). If they dividend 1.50-2, what do they do with the rest? You have to think they'd likely keep the rest in the company and either continue to leech off the company for wages each year and/or use the excess cash to try to make acquisitions of a small bank or something.
It's his history to do this kind of thing. Now he's putting his daughter on the Board. Given the uncertainty of dividend income being 15% after the end of this year, it would be smart for him to do this
some hedge funds (mabye Bill Ackman) should keep buying it up and force them to pay out most of the money. Bianco's don't hold over 50% of shares. This is free money to someone who wants to get activist.