based on what Crain has said, I'd say next move is to buy out Tabor in Texas, who owns the largest agent station. He also mentioned Miami, Chicago and Houston.
actually there is $10M of cash, the total value of a deal could read $25M with that cash as the initial payment, then workouts and the rest.
so the offering means that RLGT now has $10M to spend. Betting on some agent station conversions, probably in a gateway location. That's a safe investment and probably part of the pref deal. Nothing risky. Converting $3M of ebidta for $10M would certainly boost the stock. if this is safe enough for pref stock, safe enough for higher multiple.
depends on what you mean by "this." The retail card business is disappearing, and that's the higher margin business. IDT benefited from the bankruptcy of largest competitor and then expansion into western us. that won't last forever. S Jonas said as much in the cc.
it's not in terminal decline? for the moment it's gaining share in a declining industry but soon it will shrink with the market. they wholesale business will still be worth something to somebody.
I'm still here, man. CTM even named a comic book character after me (look it up). That earnings report was a little flaccid. Ultimately the retail business is in long term decline. There are Vonage , commercials on TV day and night, plus Skype and everything else. So that business ultimately toast. Pretty soon IDT will be paying taxes, so that's another hit to cash flow. $25 is the limit, I think. S Jonas is not up to the task, that goes without saying.
if the point is to loot the company, this is a good start. look at the salaries for management and board. those aren't the salaries you issue if money is tight.
it's great that crain manages to beat his SEPTEMBER 30 guidance. Must have been a really big final day of the quarter. now that the network is built out, both at the agent stations in the US and now the line haul network, the next step is build up volume and efficiency in the US gateways and overseas. That explains three new c/o stations via OTE (DFW, ATL, PHX) and new station overseas in HK. After building up the volume, now is the time for margin expansion.
maybe this is a cheap way to fire people without paying severance. can't be too cynical . . .
this stock has always traded at a large discount to tangible book, so to trade at a premium is a surprise. it only takes one seller to drive the price down. At this point, there must be a buyer looking to take advantage of the tax credits.
the only explanation I can come up with is that there is an acquirer. For instance NAVR is a distributor that could use a nationwide distribution footprint and a sales force to augment it's distribution business. SED is worth more alive than dead, so the only hope at this point is some kind of acquisition.
I don't want to pile on anybody here who lost money. good news is you might still get out. believe me, I've been there. but why would anyone want to own 40% of this company? now he can't get out. there are no buyers out there, he's the last one. he will own 40% of $0. You don't see Kidston or the other board members buying, do you? I bet the old CEO, the BIL, sold all of his shares, probably sold them to Gad. the old family here, what is their name? the wife and the uncle also were consistent sellers. it just costs too much to shut it down, not only break leases but fire employees, pay off the bank line (what are the banks thinking?) and so on. it's just an ugly situation. it's fitting though, Gad is a convict who thought he was going to loot the company. the company got looted before he had a chance.
you're double counting. the LA business is probably not worth premium to invested capital. ultimately it's just a salesperson on a phone.