Anybody else holding Friday calls?
I agree. Today'd be a fine time for UFI to be in the market buying up some of its authorized buyback.
13D filing by a French company, who bought 13.3% of DEST, informing marketplace of its 10/29 offer to acquire (rebuffed as too low by DEST board with a 45% premium and low cash component), and acquirer's continued interest in discussing. Its reported buys:
12/1/2015 50,000 $ 5.6946
12/3/2015 65,658 $ 6.2608
12/4/2015 43,613 $ 6.6790
12/7/2015 94,790 $ 7.1128
12/8/2015 169,913 $ 7.5736
12/9/2015 559,311 $ 8.2541
12/10/2015 87,353 $ 8.2233
12/11/2015 155,422 $ 8.8835
There's been a big bidder for shrs of PBIB at $1.50 for several weeks now. 52.7k shrs presently bid--and that's what they're showing! I'd bet there is a desire to build a real position in this one. They are certainly being patient.
Sentiment: Strong Buy
The cash is in euros, received from the sale of Portugal Telecom to Altice. Oi still has the PT bonds outstanding. Given Oi's credit profile, it makes sense to hold onto that liquidity, because if it were to settle the debt, who would lend to it at the moment? The good news---very good news--is that regardless of what happens to the real/euro exch rate, it has no net impact on the economics of Oi.
IMO it's very likely that folks who failed to voluntarily convert from preferred to common are beginning to bail on owning the preferred at all. Given that 2/3 of the preferred shares are converting, liquidity will move to the common, but not all of it. Folks will have to ask themselves why they are holding the preferred security, if it isn't for the increased liquidity the stock offers (because dividend preferences are just irrelevant for this issue).
My guess would be that the company may permit another conversion in 6 months or more, at a worse conversion rate than 0.9211 shrs. Good luck to all.
Coming up with cash? Are you serious? They have $166 million in cash sitting there since they did a convertible note placement months and months ago. CEO has been patiently pursuing the right deployment of this cash, and now he's done it, with lots left over. There isn't any financing needed here.
Sentiment: Strong Buy
$51million in deferred tax asset is worth $2/shr on top of tangible book value. As the Fed begins to raise rates, PBIB will earn its way up, tax free! Very important for 'invisible' value here.
How can one know for sure if the conversion factor is still valid? The original MOU expired in Oct 2014, subject to extension, and now the PT asset sale has closed... The MOU had been a contractual certainty on conversion; what exists today to deliver that certainty? Is there even a timeline to share class simplification?
3.5million shares crossed the tape pre-market at $15.25/shr. This no doubt was part of the selling shareholders' 10million+ shrs recently approved for sale. So some broker takes a big haircut from the seller, and we all get hosed? Hold on to your positions, price surely will recover, because it's just a liquidity bump. Not new shares being issued by the company.
Since they no longer are a 5% shareholder, will we no longer see their additional sales if they are working down the remaining 3.8% stake in JOEZ?
On Dec. 10, the company issued a press release about capital transactions that ended as follows:
Assuming the fair value of the Series E and F Shares to be equal to the aggregate $10.5 million liquidation preference of those shares, then upon shareholder approval the Exchange would improve common stockholders’ deficit from approximately $9.0 million as reported at September 30, 2014 to common stockholders’ equity of approximately $26.2 million and would decrease preferred stockholders’ equity from approximately $38.3 million as reported at September 30, 2014 to approximately $10.5 million. This results in a pro forma tangible book value of $0.99 per common share as of September 30, 2014.
So I ask: how can this stock possibly be trading down after such an announcement? What am I missing?
Could someone please enlighten me as to what's going on with XOOM today? Volume is somewhat elevated, but given the huge% increase there must be news / rumor??