Thank you. I think with a market cap of roughly $1 million, that much cash in the bank, substantial NOLs, and litigation assets (admittedly litigation liabilities as well)- OPBL is a decent shot.
I admit to lurking here in the past and have always enjoyed your posts and enthusiasm. Have you considered applying your diligence and research to other complicated situations? For instance, I am currently long TRIDQ, EVEIQ, BCONQ, DPTRQ, ONAVQ, TPPHQ...you get the idea! These markets seem to be inefficient to me and a diligent investor may have an edge.
It's just me buying the 2 cent stock...I sold out on the tender. I'm back in - 900k shares purchased today. I wonder who is selling...
You still following?
I used to own it - now revisiting it.
Noticed going dark.
Do you have recent financials?
I spoke too soon: 5.9 million after all. I wonder why 5.5 are listed as outstanding?
In total, approximately $2.75 million was used to pay the cash out
consideration in the Stock Split Transaction. Upon the effectuation of the split transaction, EDCI had approximately 5,929,153 million shares of common stock outstanding among approximately 175 beneficial shareholders in street
name and approximately 9 record holders.
quarterly report here: http://www.otcmarkets.com/financialReportViewer?symbol=EDCI&id=63444
Page 8 breaks out EDC from the consolidated balance sheet. It shows the 21 million NAinLiq split up between 9.9 million in EDC and 11.1 in EDCI.
They make about 5 million more on recent sale of EDC.
Not sure why Kings Mtn would be added to 26 million though.
First the answer I am pretty sure about:
Issued shares = 6 million, but outstanding = 5.5 million
Market Value1 $23,657,320 a/o Nov 30, 2011
Shares Outstanding 5,929,153 a/o Sep 30, 2011
Float 5,531,626 a/o Sep 30, 2011
They did that revers split where they cashed out shareholders with less than 1400 shares. I assume they bought about 500k shares at that time.
Sep 30 Financials show EDC carried at 9.9 million of the 21 million net assets in liquidation. So adjusting to 26 million/5.5 million shares gives a NAV of $4.73. Based on this I sold today at $4.74.
This has been a great trade returning over $11 on a sub $5 investment in a little over 2 years. I just wish I did it bigger.
Kudos to management for running such a good game plan.
Up to 26 Lit Trust reports now...30 settlements, 9 bankruptcies - leaves 27 or so pending cases, mostly in state court. It seems everybody is waiting for the US ct of appeals to rule on defendants petition for yet another appeal, a wait that has taken six months now.
Meanwhile CDCO liability to CDCOR holders is much reduced by all the settlements and consequently CDCO declared and paid an interim dividend to both CDCO and CDCOR holders. They paid out $20 million of their $50 million cash in April 2011.
So "book value" of CDCOR shares is currently 9 cents or so while the big unknowns remain how much the Lit Trust can recover and how long it will take.
I'm still holding, but would love to see a pop in the stock, like spring of 2008's random move into the 20s.
Today's 8k indicates shares outstanding decreased by 126.5k. Maybe the company bought London Company's position. There were only 2 days with volume over 40k in the month, none over 50k. I would think they would have had to use an exchange.
Details should be coming in 10q.
from the recently released 2008 10K:
"On November 6, 2009, President Obama signed the Worker, Homeownership, and Business Assistance Act of 2009 (HR 3548) into law. The law includes a provision that will allow the Company to carryback its net operating loss for federal income tax purposes from 2008 for up to five years and obtain a refund to the extent that taxes were paid in the previous five years. As a result of this law, the Company anticipates receiving a refund in the amount of approximately $1,400,000 during the first quarter of 2010."
from the 12/31/2008 10K released on 2/2/2009 (just a little late!):
"On September 18, 2009, the Company closed on the sale of its headquarters and primary manufacturing facility to the City of Grapevine. The Company is entitled to continue to occupy the facility, through December 31, 2010, at no cost. The City has further agreed to pay the Company’s relocation costs within the Dallas-Fort Worth area and to pay the Company’s real property taxes for the Facility through December 31, 2010. Proceeds of the sale were used to pay off the $2 million mortgage loan from F.F.F.C., Inc. and for general working capital purposes. The City paid a purchase price of $2,747,000. The Company estimates the total value of this transaction at $3,500,000."
Hey, HDLM is back and was/is very good to me! Of course my average price is a lot lower than Sal's.
For those of you who like liquidation plays, there is still meat on the HDLM bone. They are getting an $11 million tax refund from the Feds and will have $0.31 per share to pay out according to the latest 10Q - so a double from the current price in 1-2 years.
Now back to your regularly scheduled programming...
If the last Q was great, this one was over the top.
They gained $10 million in federal income tax refunds due to the law change last month. That works out to a gain of about $0.50 per share taking "equity" up to $0.31 per share.
Liquidation expected to take longer however, through 2011 they say.
Unfortunatley there were no damages and no atty. fees awarded, just $2.7 million in interest.
On the bright side, since no damages were awarded, Apple may just pay up, rather than appeal.
Only 15k tendered at the old price as investors may realize that 6 quarters of unpaid dividends gives preferred holders the right to elect directors. I predict full payment at that time. I'm holding out.