I must admit that the hybrid nature (retailing & lending) of the business model makes analysis more challenging than usual.
So, my question is this:
Is there any reason that the newly configured business cannot achieve the same EBITDA margins and net income margins as FCFS and CSH?
How long will it take, do you expect, for that to become visible?
Given the current revenue run rate, what do you think is a sustainable level of FCF and net income?
Are these the right metrocs to focus on when thinking about the potential valuation?
Given the initial business base and combined with what was added to it, I find it difficult to believe that they could not get $125mm for it, essentially "covering" the company's total debt.
I think that is a modestly conservative valuation.
Do you doubt that?
Still lacking in basic understanding, huh?
They earned income and cash flow during Q2.
Once they knew how much they had, they declared the dividend of that cash.
Otherwise, they would be declaring and paying out cash for Q3 that they had not yet earned.
I would be interested in your take on the valuation that I outlined above:
The Medical/Electronics business sale covers all of the debt, while the sonobuoy business garners on the order of a 12X EBITDA multiple generating equity value in a sale of $336mm or ~ $32-$33 per share.
I think it is/has been/will be pretty hard to expand the defense side, though they have made a few attempts (Aydin Displays, et. al). Few other businesses have the margins that the sonobuoy business has, so those investments necessarily dilute the returns, which was always a problem with the M&A strategy to begin with.
A change in outlook is not a downgrade, but since you are obviously poorly informed about most everything else, there is no reason to expect you to be well-informed on that.
I guess you prefer that most people seeking employment have the door slammed in their face.
Our government promotes micro-lending in third world countries but the government here wants to prevent people from having the same opportunities.
Pathetic liberal mindset.
This comment doesn't even make sense.
Who cares about your Priceline fantasy?
Good for you if you really did it.
Yes, and the fractional share will be paid in cash more than likely.
For each hundred shares you will have 20 shares of one (1-for-five) and 6.66 of the other.
The ST and LT status should be the same.
You were SO WRONG (lol). We got the announcement 1 day after your post!
Tomorrow we shall see if we move toward the $8.50 level and get into the range you foresee
For my sake, I hope we do. In the past, I hve layered out of a number of really good trades, selling on the way up, and not realizing maximum value.
With EZPW, I have not sold any shares and indeed, after getting assigned on a short position in the December $5 puts and watching it go under $2.50, I started buying on the way up at $2.99 and didn't stop until my last purchases at about $6.05. I bought alot in the low 4s.
As a result, in dollar terms, this is now the largest position I have ever had, accounting for almost 14% of the combined value of my stock market assets outside my 401K.
What is my plan?
I expect to see the company execute on the sale of GF and begin demonstrating strong performance in the core business. I think that combination of events gives the stock another 50% upside from the $8 level, so $12 as a target. it will be psychologically VERY difficult not to sell any shares before it gets to $12.
If I can control myself and limit the impulse to lighten up until I get to $11, I can control myself and limit myself to selling 10% of my current position at $11 and another 10% of the current position at $12, $13, and $14, respectively, I will have recouped my entire original investment and will still have a very substantial position.
After hours block trade of 62,200 shares at $8.00 crossed the tape at 5:19 p.m.
Still showing a bid of $8.05 for 20,000 shares with 700 shares offered at $9.00.
The deal contains a number of contingencies.
Firstly, $50mm is for 100% of GF. EZPW owns 94%, so they will get $47mm for their stake.
There is a financing contingency that allows the buyer to defer $25mm of the $50mm purchase price for one year if they cannot obtain financing. If that happens, the purchase price increases by $8.1 million.
In addition, EZPW believes that "purchase price adjustments" may reduce the cash received from the sale by as much as $10 million, so $9.4mm less for EZPW.
In addition, there is $50 million that GF owes to EZPW. This amount will be repaid in three annual installments with interest paid as well, though the amount for not given.
So, EZPW will, over the course of three years, get at least $94 million, or about $1.80 per share in cash.
And, of course, the financial statements now can be restated to exclude the discontinued operations, or, at the very least, the current year's results can be restated to exclude the results of GF.
Of course, this is all good news, and EZPW now is bid $8.10 after hours, though somebody was able to print a $7.64 trade after the trades above $8 had printed.