Prorating number of locations gives company valuation of 2.7 billion or approx market cap for whole company. Yet china is growing faster than rest of the company. Therefore market cap or share price of company overvalued if china IPO only puts 900 million value for the fastest growing third of their locations.
the required amount for their takeover to go through.
They clearly don't turn down any Muni business. Since they are clearly going to do every deal out their, they should shut down their risk assessment/ finance department and just have a clerk with a rubber stamp.
issue more debt and keep chugging along. I mean if they sell a billion plus of new bonds, someone is buying that. And wouldn't the new debt be junior to the existing debt. And at the same time someone will be buying this and they seem to have a sophisticated understadning of the market. Just seems the blank never hits the fan
What is sad for shareholders is that due to the unmerited attacks the company will be taken private for a ridiculously low price. i.e $9 verses $25-30.
To be more specific it's MSPEA which means they have boots on the ground and experience in the area which makes them the elephant in the room in terms of credibilty and makes talks of a fraud a complete joke.
Private Equity Asia
Morgan Stanley Private Equity Asia is one of the leading private equity investors in Asia-Pacific, having invested in the region for over 20 years. Private Equity Asia invests primarily in highly structured minority investments and control buyouts in growth-oriented companies at attractive valuations. The experienced investment team is led by senior professionals with extensive industry relationships, in-depth market knowledge and the ability to apply international investment principles within each local context. Private Equity Asia has offices in Hong Kong, Beijing, Shanghai, Seoul, Tokyo, Mumbai and New York, and leverages the brand and unparalleled global network of Morgan Stanley to source investment intelligence and opportunities.
hey BSpixs. Might want to look at what happened to YONG and CHBT who were taken private. Alot of the H-town J's who were caught short yapped about the deals not being real, and the shareprices didn't go to the offer prices right away, but guess what. They were taken out for the offer price, just like this will be. Might want to do some math on the cash per share they have after the selling off a chunk of operations.
Considering the 40% growth rate and 4.83 EPS est for 2016 it seems there is very little risk to the downside. What am i missing.
Wrong. The full dilluted DOES take into account a $6.25 conv shares on the 100 mill convert. They just present it by treating the 16 mill shares as a minority interest and reduces income to common shareholders by the pro-rated amount. The result is the same as including 16 mill shares in a fully dilluted eps without reducing net income before hand.
While it's of course not a pure play, it seems such fees would make up a larger portion of business compared to the money center banks. Or is there a publically traded company that would be a better play on this, because m&a is going to be strong for awhile.
They will hit a $5 run rate at some point next year. Unfortunately MS asia will help them take this company private for chump change before the two new plants are fully ramped and printing money. Remember they will be able to take the company public again on a chinese exchange for 30-40 no problem.
The 660 calls purchased for june and july have all been bought because they were all 25 cents--near the ask price. i.e for someone to sell such out of the money calls they would've been lucky to get 5 cents.
Also have bought approx 250 $7.50 july options for 25 cents. Not a much of a positive, just interesting more than anything.
Best I can tell between principle and interest payments they have 8.5-9 Billion in exposure.
IT will be interesting to see how much they lend for the phase 2 construction.
Needless to say, I have no idea where the shareprice is going. Although this would be ridiculously cheap at $20 based on a foreseeable $5 eps runrate and no chance of fraud (SEE Morgan Stanley Asia ownership) I am pessimistic enough about shareprice to maintain a small position. Will begin to increase it in late summer and fall.
in China. The proceeds can be used for buybacks or dividends down the road. Or of course continue the growth outside of china. If indeed this Dubia ramp up unfolds as expected financed by cheap debt and reuslting in 80 million dollars annyalized return from an investment of 280 (appjrox 30% ROI) sky is the limit.
Unfortunately given the ingonrance of the US invjejtor base and the success of even the most unsophisicated short attacks and BS H=towns lawyers, the company--with the help of MS asia--will take the company private at an obsenley low valueation i.e 8-10 bucks a share, and then list it in china for ,say, 8 times the $5 EPS runrate they will hit in the second half of next year--or $40 a share.
at Libor+ %2.
building sichaun and then there is the working capital needs to finance doubling of revenues. i.e their AR will double.