You could put a spread trade on by going short bbx and long bfcf. I think for every 100 shares of bbx you can go long 600 or so shares of bfcf. The trend on the spread has been going down for months meaning the spread is narrowing. I would imagine the spread would continue to get more and more narrow and we get closer to a deal. A great way to profit from time until the merger is complete. Just an idea
Looks like the market was pretty indifferent to the 10Q. I still like the value here and continue to hold. I'm still wondering how this merger will be pulled off. What's the CEO going to do to get BFCF listed. Also, it seems like it would be in the best interests of the CEO to get this merger done as fast as possible before some outside force starts trying to bid up the assets. I'm going to speculate that in order to get this merger done the price of BFCF shares must be over $4. I'm guessing we will see a similar run up in BFCF to $4 similar to the run just experienced in BBX. The name of the game for the CEO is probably to get this merger done before next quarter earnings. If the general market gets wind of BXG valuations, wer'e off to the races. Probably better to merge first then report BXG earnings in the CEO's mind. Will see how this continues to play out.
Haven't fully read through the 10-Q's of BBX but BFCF's numbers look solid to me. Sale of VOI's which is like membership rights in the resorts previously held by BXG was up 14 million from the same quarter last year. They added about 63 million in cash to the balance sheet in this quarter alone. Overall 0.03 loss per share this quarter. Last quarter was a loss of 0.08 but was revised to a loss of 0.04 due to discontinued operations. Total shareholder equity increased to just under 513 million. With BFCF's market cap at just under 166 million, thats 3x less than the book value (shareholders equity) which is a steep discount.
Can't wait to see that 10-Q and also the response in BBX and BFCF shares....Best of luck to everyone. Very few ppl seem to know about these two companies so kudos to everyone here for finding and seeing the value. May we all be rewarded.
We should get earnings from BFCF sometime after the Bell today or tmrw. Also have earnings for BBX May 30th. Obviously these upcoming earnings will provide much clarity about the true valuation of both BBX and BFCF. Looking forward to watch this situation unravel.
Somebody purchased +10 Dec 13 $12.50 strike call options for $1.55 outlaying $1,550. This $1,550 would control $12,500 in BBX stock. You would only buy an option like this unless you seriously believed BBX will not trade below $12.50 all the way until Dec.
We have earnings of BFCF sometime in May as well as earnings from BBX. Both these earnings report should be very interesting. Also, we should get the merger proxy info anytime now outlining the details of the Merger. Anyone want to guess the price of BBX and/or BFCF by the end of this month. I'm thinking BFCF is north of $3.00 by the end of this month and BBX is north of $15.00. Earnings will be the catalyst to push share prices up. I'd be disappointed if BBX completed the merger at the $13.00 level which is very undervalued.
Someone purchased over $100,000 worth of shares of BFCF at $2.40 1 minute before close. Lots of odd things going on in both BBX and BFCF. Very interested to see how this all turns out. Been holding the $10 calls for weeks now and even used some of the gains to buy some $15 calls for 0.15 cents.
What's your reasoning for an $8 price target. I'd be really excited if we fell to $8. I'd be a buyer. Nice little company with solid assets selling far below book and free cash flow. Especially in the $8 range.
Also I quote "The listing of BFC's Class A Common Stock on a national securities exchange or interdealer quotation system of a registered national securities association is a condition to consummation of the merger."
That would mean BFCF would need to at least be $5.00 a share to list meaning BBX shares should rise way north of $15.00 for the merger to be completed. What am I missing here....both BBX and BFCF look very undervalued.
So BFCF owns the recently acquired BXG. I'm thinking the BFCF shares are highly undervalued and they will begin to rise before this merger is a done deal. I think BFCF is worth $3.00 a share at least which would bring BBX share price above $15.00. It will be interesting to hear the earnings report expected out from BBX May 30th. When is BFCF's next earnings? Anyone have an idea on the potential share price of BFCF before the merge closes. This def. seems like a lowball offer with book value alone for BBX at $15.50. I'd be suprised to see BBX stay in the $13 levels.
Has anyone looked at the financials here? I have. Zynga is loaded with cash and virtually no debt. There revenues have grown by 50% for the past three years. They have high research and development costs which takes a huge bite out of revenue but these guys could be a cash machine if they manage there book a bit better. This was not a good buy previously with the market pricing in growth too heavily just like it has done with Facebook, Netflix, Green Mountain Coffee Roasters, etc. However, here I would look at buying long dated call options.
I think the liquidation value is around $1.45 a share so I wouldn't buy shares anywhere above that. I'm hoping the market over reacts to the downside and sends shares down to $1.00 level. Then I'd buy. They will liquidate and you will get a dividend but the question is how much. I'm saying my 'how much' number is $1.45.
Novacopper has great value and I'm excited you guys want to sell your shares post spinoff. Novacopper is going to be run by one of the greatest geologists of our time. The same guy who found this deposit for Novagold. The Ambler District is a great potential asset. One of the largest copper deposits in the world.
Seth Klarman just bailed on his position in Targacept but Aveo seems to still show promise. Tivozanib can still be seen as a success at ASCO. The catalyst is still there to make the appreciation in these shares substantial. I wouldn't necessarily allocate a large amount of capital to this position. Maybe only $3,000 to $5,000 would be a good amount to buy shares here at these prices. I see the common shares as more of an equity option. Running a $100,000 portfolio would suffice for a 3k to 5k investment. It's relatively easy to say Tivozanib will get approved. The cash flows from this kidney cancer drug could be very lucrative for shareholders. I'm willing to allocate capital here.
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Agreements Relating to the Debtors’ Securities
As of the Effective Date, the Company issued to existing holders of equity in the Company, warrants in two tranches, New Series A Warrants and New Series B Warrants (collectively, the “New Warrants”), to purchase up to an aggregate of 1,216,216 shares, or 7.5%, of the new common stock of the Company, par value $0.01 per share (the “New Common Stock”). In connection with the issuance of the New Warrants, the Company entered into a warrant agreement, dated as of the Effective Date (the “Warrant Agreement”), with Computershare Inc. and its wholly-owned subsidiary, Computershare Trust Company, N.A. (collectively, the “Warrant Agent”). Subject to the terms of the Warrant Agreement, the holders of Equity Interests (as defined in the Warrant Agreement) are entitled to purchase shares of New Common Stock at initial exercise prices of $62.13 per share for New Series A Warrants and $68.56 per share for the New Series B Warrants. The New Warrants have a seven-year term and will expire at 5:00 p.m., New York City time, on February 14, 2018. A holder may exercise the New Warrants by paying the applicable exercise price in cash or on a cashless basis. The New Warrants are freely transferable by the holder thereof.
The number of shares of New Common Stock issuable upon exercise of the New Warrants and the exercise prices of the New Warrants will be adjusted in connection with any dividend or distribution of New Common Stock, assets or cash, or any subdivision, reclassification or combination of the New Common Stock, as set forth in the Warrant Agreement. Additionally, in the case of any reclassification or reorganization of the outstanding shares of New Common Stock, the holder of each New Warrant outstanding immediately prior to the occurrence of such reclassification or reorganization shall have the right to receive upon exercise of the applicable New Warrant, the kind and amount of stock, other securities, cash and/or assets that such holder would have received if such Warrant had been exercised.
The foregoing description of the Warrant Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Warrant Agreement, a copy of which is attached as Exhibit 4.1 to this report and incorporated herein by reference.
Have you heard of rehypothecation. Well, Knight Capital is hog crazy over rehypothecation. This company has 1.17 Billion off balance sheet liabilities. That's more than the current market cap. What happens when collateral to rehypothecate dries up. The music will stop and Knight Capital will be standing without a chair. I'm not saying these guys are 100% toast but they have some toxic waste on there books that is pretty scary. What do you think?
Sucks for you. Guess you can't short them and make any money. For me, well I've been short Sears for awhile. Don't worry about my borrow rate. What's it to you? And I don't need to prove I'm short to you silly. Your a Warren Buffett Wannabe and your on a Sears board? LOL