How does depreciation and capital expenditure help Signature? Why would they focus on either with 900m in Federal and State NOLs?
I'm not sure how they'd do it as I'm not a tax guy but this seems to be the one off situation where they actually want the tax man to come at them large now in exchange for little later after the NOLs are used up.
I'm wondering if it's even possible for Sig to do another one or two of these type deals. Basically just keep on borrowing to buy net revenue as long as the numbers work i.e. the borrowed money is cheaper than the net revenue from the purchase.
There was no take back financing. Seller cashed out. 495m cash and 30m shares. Signature is financing through third parties. Zell backed.
"Under the terms of the stock purchase agreement, Signature will acquire GRSA for a purchase price of $525 million comprised of $495 million in cash and $30 million in preferred stock in Signature."
Exactly. Stock is skyrocketing on no news and volume is up the yingyang over nothing, right? But there's nothing to it, right? It's just random stock market movement, right?
These aren't insiders' families who know what's coming right? Give me a break. What a crock. What a rigged game.
I'm thinking the financing is going to cost them about 5%, maybe 6%. So 5% annually of 525m is about 25m in annual finance costs. 25m off that 75m leaves about 50m a year in net revenue to SGGH. With a company growth rate of almost 7% a year in a solid under the radar business. And it looks like they will get to use those NOLs so all revenue will be tax free for the next 15 years. Pretty good deal from what I can see. Nice job Craig and board. I just wish you were with us 4 years ago instead of the clowns who took over in bk.
Now the question is whether the market cares. Stock has popped back to 10 on the news. Now what? Drift back to 7? Keep going to 12? It's a roll of the dice at this point especially given this deal got done at the top of a bull market.
A Transformative Deal with Target Generating Annual Revenues of Approximately $1.5 billion. For the twelve-month period ended June 30, 2014, Aleris reports that GRSA's earnings before interest, taxes, depreciation and amortization, on an adjusted, stand-alone basis ("Adjusted EBITDA") were $74.9 million
Not too shabby. You'll finally be able to start using some of those NOLS! Right? Well, maybe not so fast as you had to pay 525 million cash for that business which now must be financed because you don't have 525 million cash. So how much is the financing going to cost? What is your net taxable revenue expected to be? Do you have any chance of hitting 900m in net revenue over the life of the NOLS? If that business is going to grow at 6.7% a year, using the 900m in NOLs is a tall order isn't it?
Well, maybe I'll get back in. So far no reaction whatsoever from the market. That's what happens when you go dark for 4 years.
Wolfson better bring his A game to the call on 11/5
The message board mickey mouse club going to write and sign a petition?
You people don't count. You're fleas on the dog.
Tesla's 'D' adds all-wheel drive, safety features
Ooh, ahhh, oohh. Nobody's ever put AWD in a car before right? It's amazing right?
So Let's do a press conference. Let's stand up on stage and try and get dramatic and describe to everyone how our overpriced, low range vehicle for the rich only now comes with AWD.
That ought to justify TSLA's 30b dollar market cap right?
Seriously, can you people be any dumber. When this bubble bursts, you'll deserve to lose 90% of your investment.
Can't they bypass any SZYM patents by using a different strain of algae or by making some other trivial modification to the overall process?
You want that answered on a message board? Put up about 1 million, hire multiple top level patent law firms to research it and give you opinions and the answer will still be gray. But ask it on a message board? It just shows you are clueless.
Nice short wet dream. That's not going to happen.
What? The stock is not going to $5 or $4? Like it wasn't going to $6 today--like that wasn't ever going to happen until--er ah umm, until it happened?
Stock was at $15 before Moema even opened and here we are with Moema open and large scale fermentation underway and 200m more in the company coffers than prior to Moema opening and yet the stock just hit the high 5s. But it can't go any lower, right? You're guaranteeing that, right?
Solazyme’s core fermentation technology is performing well at Moema, with ongoing successful large-scale fermentations of two different products in multiple full-scale production vessels. Although the key downstream unit operations are functional all the way to oil production, and modest quantities of finished product continue to be produced and shipped, downstream processes at Moema require further optimization and are not yet operating on a fully integrated basis. This is an area of significant focus and ongoing improvement.
These and other developments will be discussed on Solazyme’s investor conference call for the third quarter of 2014, which as announced separately today will be held on November 5, 2014.
Moema is pathetically delayed once again so no upside potential here in the short run. And lots of downside potential especially given it's quickly coming up on tax dump time. This thing could easily go down to $4 a share and maybe should because it's unproven technology. Even at $4 it would still be a several hundred million dollar company. Bottom line---- looks like longs are toast for this year.
And the perfect time for a big player to come in and buy this thing for pocket change. If it goes down to $3-$5 a share, a large player could come in and pick this up for $8-$12 cash in a hostile takeover. What a coup that would be. Kick out these small time bums, screw over the shareholders and run this thing with billions in private money.
That's right Chubs. Only got 400 shares on a 2000 limit order. We'll see what happens later.
Announcement. Crappypants now has a full load.
Keep averaging down diaper boy. Show em how to do it!
Come on David. Keep up.
Their oil is now in cosmetics and soap and a drilling product (and probably other products)----their oil is in the marketplace in product. It's no longer speculation it's available for purchase. Screaming "no oil" just makes you a buffoon.
And no cash--What's wrong with you? They just suckered 200m out of the marketplace. They now have $3.60 per share in cash.
Think before you speak.
Earlier this year, why did SZYM sell 200m worth of stock at $11 when it was trading at $13? And how did all those people know to dump the day before?
I'm betting there is some bad news out there and these are just insiders dumping before the news is released. Same as early this year.
You got a partial fill? Thanks for sharing.
Ask your mama to changed your diaper because even a partial fill can cause diaper rash.
Reality sets in. Szym is flawed. No progress. No profit. Cash burning.
Where are you getting this from? I haven't seen any news that says SZYM is flawed or not making progress or not on a good path to profitability?
Why has radiation therapy in general not been completely displaced by these implants? I mean who would want to sit through radiation treatment after radiation treatment where so much healthy tissue is unnecessarily damaged when this implant can deliver the radiation so much more directly and effectively targeted?
Somebody educate me.
So chubs, what does your comment have to do with keeping an ample supply of dry powder. Duhhhhhhhhhhhhh
Hah? You can't follow? You just said keeping dry powder to buy. You just advocated chasing this loser down with "dry powder". Now, you can't follow how chasing a stock down is generally a bad idea?
Without dry powder, you won't be able to take advantage of spectacular opportunities what ever they may be.
Said the crystal ball operator in-- for example-- BBRY at $100, then $80, then $60, then $40, then $20, then $10----ahh, but the magic bottom was at $5 wasn't it? Maybe.
Trying to catch a falling knife is no way to invest. Chasing losers is no way to invest. Investing means diversified buying and holding and checking only ever couple of years.