Hey shorty! This is a small part of SXCP, less than 4% of EBITDA! The stock is down 75% from its highs because of overall steel pricing and the future prospects of Mittal / US Steel. What you are talking about is not that important to the SXCP story. However, if you're having a good day being short the stock please pat yourself on the back and have a nice day.
FELP is about 7% of their total EBITDA. Do you think the contracts will go to zero? It would seem that a stock which yields 25% has already panicked enough to worry about 7% of EBITDA going to 4%.
It's possible, but it kind of screws up his other plans. If you have a higher stock price, you can use it as currency to take over the world, which is what he seems to want to do. You can use it to incentivize new employees, and they write articles in the newspaper about how his stock is up 100% and what a genius he must be.
While they have finally admitted that Monoprice was a bad purchase and that Search is a zero, think this is a massive positive for the company. The consolidated company will be earning around $2 per share in free cash flow in 2 years. With how much they have in NOLs, it's being valued at 6.5x pro forma free cash flow vs. H&R Block at close to 18-20x and other more comparable companies. The two businesses here are real, largely recurring, somewhat synergistic and set themselves up for a big re-rating after the deal closes and they finally shut down Search.
Thanks for the info. It always seems like month-end means a big outperformance for BFCF - who out there is marking their books?
I don't own the company anymore, but just think it will go down until they do the equity raise. Unfortunately, it's self-fulfilling and the equity raise will be much more dilutive the longer they wait. Perhaps they do converts to a large shareholder plus equity, but either way you really need zinc prices to truly stabilize, an equity infusion and better production out of Mooresboro.
if BBX mgmt sold their shares on the open market BFCF's ownership interest would go under 80% and they wouldn't be able to consolidate BBX, or use the net tax loss carryforwards. By buying the shares directly from management it means that this can't happen. Probably means that Levin wants to sell his BBX shares at some point and this was the easiest way.