LEVY and TACO management started investor road show after the earnings last week.
Fund managers are buying this now. Two investment groups filed SEC 13F in the last week adding TACO.
SHAK after hours more than $6 making market cap of $3B for a Q1 revenue of $37M .. .worse than internet bubble.
Market cap now over $2.5B
LOCO reports 5/14, $89M revenue $1.1B market cap
Should be good week for TACO.
LOCO current market cap $1.1B and they are expected to post revenue of $88.3M for the quarter compared to $94M for TACO.
TACO currently at $280M market cap. LOCO earnings might further propel TACO more than LOCO itself.
Market in General: There are two schools of thought on market right now. One group thinks, market is totally over bought beyond fundamentals, in bubble territory, rest of world in recession and hence looking for correction. While the other group thinks, Europe is coming out of recession (instead of going into one), China cut interest rates 3 times (latest one today), Fortune 500 companies are stuffed with highest levels of cash (ever) and ready to buyback on any weakness, lower commodity prices helping generate significant cash for most industrial companies resulting in market going higher.
There may be a small correction (if any) but market will shoot back up to much higher levels in no time (instead of slow recovery last time). In fact, my call would be market breaking highs next week.
TACO: This is just getting started on turn around cycle. While TACO has the second highest number of locations, it barely makes money now because of 1) large debt at high-interest rate (13%). TACO just paid off partial debt recently with $ from LEVY which will only start to show the impact in Q2 (Q1 will still be bad). Because of this bad debt situation, they partnered with LEVY and made a deal.
Second issue with TACO is the average check at $6.49. Del Taco is serving Chipotle type of food at less than Tacobell prices resulting in not so great margins. TACO is not losing money but not making either beyond requiring to pay their debt. Del Taco might open 400 more stores in the next 18 months but will have to work on increasing the check size.
If we compare to peers TACO looks great at EBITDA level but looks pathetic at EPS.
Once merger is complete, I expect $550M-$600M valuation and as they improve the financials and continue the expansion, market cap should increase accordingly. Investors holding warrants (TACOW) will benefit most short term and TACO shareholder will benefit long term.
Sentiment: Strong Buy
tendered shares are locked up and not available to trade and also to short.
In couple of days most of the shares will be returned minus 15 percent . Traders who purchased for the sole purpose of tendering will dump and leave. Happens all the time.
better to wait on the sidelines for a week.
why do they need $100M cash after purchasing these shares??
One director sits on SPWR board watching it jump from 3.57 to 27.50.. in the last 7-8 months.
Two other directors have invested in 3 million shares in SCTY whose shares jumped 450% at the same time. Are these Silverlake guys that desperate for cash?
How could they recommend "FOR" merger with ABB at 6.35
I can understand management as they are getting long term employment contracts.
Still have 25,000 shares sitting in the portfolio and have voted "against" all.
ICAHN is urging dell shareholders to apply for "appraisal rights" where the judge decides the price and awards the right price to the investors who applied for appraisal rights even if the acquisition goes through.
From the DELL proposal
The reason that doing this is a “no-brainer” is because the law allows you to change your mind up to 60 days after the transaction is consummated. All you have to do is notify Dell before the vote that approved the transaction.
Should we PWER shareholders apply for the "Appraisal Rights"
Read more under DELL for the process description.
Silverlake now owns 25,987,407 shares of PWER (6/11/2013). 21% of outstanding shares.
They need cash for Dell purchase and doing anything and everything to make PWER deal.
I hope their Dell deal falls apart and cheaters end up where they belong.
I just voted against merger, and other 2 options on the proxy.
You will receive electronic link from proxy
Thank you for voting. Your instructions have been received and recorded for:
Meeting to be held on Tuesday, July 23, 2013
For Shareholders of record as of Tuesday, June 18, 2013
news on P1 website. PRs aren't making to finance community anyone.
P1 also launched energy storage unit which is a potential game changer in the solar industry.
But why do we care? we shareholders got screvved by the management