Not much new, but two observations:
They said that they expect the Wuxi property to be sold by 2017. I don't know how much that property is worth but I suspect it won't be much. Unlike Shenzhen, Wuxi values are quite depressed. Interesting that they are confident that it will sell this year. How do they know this?
Also, they expressed their optimism about Shenzhen development. Management has been very straight with shareholders so the optimisn is encouraging. They said Shenzhen values increased by 47% last year! Pretty impressive.
According to the latest balance sheet (Sept 2015) NCAV is about $1.90. For $1 purchase price, Vtech can just use LF's cash to pay for the acquisition. Obviously this is a steal for them. In all fairness, we all don't know what has happened since Sept 2015. My guess is that a competing bid will be coming shortly. Similar game was played with another company called Geeknet. It was cheap and one offer quickly led to a higher offer.
LF is a treasure! I wonder if Vtech (Hongkong company) can clear anititrust and national security hurdles ;)
How do you know this? Link?
Why is merger bad in your opinion?
Thanks for the response. I read somewhere that the slide was in Guangming which is also another region that Nam Tai has property. But I did not see anywhere that Nam Tai was affected.
I know RELL. Last I checked it was a net-net and looked very cheap. Gencor's management controls 75% of the board of directors seats.
This company is firmly in control of management due to its dual class structure. But even in these cases, with repeated shareholder requests management will finally distribute the money that rightfully belongs to its owners. The amount of cash they are holding is absurd and they need to institute a dividend. There is no reason to hold on to the big pile of cash. Of course I applaud their prudent management of their core business. Shareholders, write to the directors.
Highway bill + Low commodity prices will translate into big revenue and profit increases. Backlog up 300%. Do not sell at new highs. This company has a long way up to go before it becomes fairly valued IMO.
Highway bill is good news but it still does not address the shortfall of financing. They need to raise the gas tax and that is unlikely to happen. Still, this could finally lead to increased revenues and maybe inject some life into this sleepy company. I definitely would not sell this net-net company now that is finally positioned to increase its profits.
What's the hurry? It'll be the same old thing. Strong balance sheet and small profit. Elliott sitting on his hands and waiting for highway bill.
MSB may be okay in the long term, but investors will likely have to put up with a serious swoon in the short term. I wouldn't be surprised it goes down to $5 by the end of the year. Investors will sell to harvest losses. " Widows and orphans" will sell because of lack of dividends. You better be ready for a ride.