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ModusLink Global Solutions, Inc. Message Board

  • investing777cpa investing777cpa Mar 8, 2013 1:19 PM Flag

    The Plan

    Great Quarter...wish the selling pressure would end (maybe this is it) but I am guessing a lot of people/funds bought to look for a quick buck. Now they just want to move into something more exciting...this is becoming a long-term investment.

    To save NOL's the Company cannot change hands (more than 50 percentage points)...the Company can buy a profitable company (based on an after tax multiple) and "shelter" the income with the NOL's. Plus make the current operations profitable...keep adding profitable companies in a tax-free environment...use the tax-free cash flow to buy more profitable the right companies at a good price without changing ownership and this baby can go up nicely

    There is also a window on the change of ownership so in a few years more money can come in and create more profits.

    The Company will not be sold or broken up...why throw away $15 a share in NOL's...see WHX Handy & has nothing to do with the old WHX...not to say we will not keep the current business that could be profitable but we need more profit...faster than current growth provides.

    I am guessing the $30m is for an acquisition...That will be good news...the L man may already have a target.

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