buyers will now step in as it has retraced much of the spike post earnings. company is doing everything right and the sector is full steam ahead. did not add today but will if it stays down here.
sorry guys. i agree there is def value in the company but Barry is like a ten ton block of bricks sitting on top of it. delaying his departure is the primary impediment. and, yes, still have a position.
at R$7.91 that would be ~$6.90/ADR. but that is based on 435mm shares. adjusted for buyback, ~$7.50/ADR. I've seen two conflicting research pieces out today from JPM and Itau with different estimated book values so I guess we have to wait for the 10K to get the final post-Alphaville snapshot.
net cash added will be around R$1.28b including cash used for Alphapar purchase. Total cash ~R$2.2b. We can only guess what post deal balance sheet will look like but I see book value ~R$7.91/share (current R$5.77/share).
hey, look at that. just sitting there watching the river flow. btw, northland put out another piece this week linking possible orders from american tower if the latam acquisition goes thru. rev est 15 to 18mm
it's not so much what price they can negotiate for the voluntary debt; it's getting the lenders to become willing to redeem. the case to redeem high yield in this environment has a higher hurdle than to hold onto it. for every buck in high yield redeemed, that fixed income investor needs to find 3 or more to replace that yield. not an easy task.
just that ADR buyers are willing to pay more and that suggests it's being accumulated. if you pair trade, shorting the ADR and long the local was the way to go before. what we know is the alphaville deal will close imminently and their balance sheet will improve dramatically.
I track realtime. The ADR has not traded at a premium to local for this long since 2011. In fact, before the company tanked it traded at an average premium of 3%.
who is Kl3? what a donk. Re: Penny. It was interesting in that the shares rallied almost immediately after the Form 4 was filed. I also wonder if the filing didn't suggest that is the extent of insider selling to expect? We could see bigger volume today as this appears to be walked down after yesterday's action.
Kl3 - the Penny Trust can absolutely sell at will. all they have to do is file. the reality is they wouldn't sell on the open market, but I will say this: they need to reduce their stake if this company is ever going to bring in more institutional owners so from that vantage, I welcome any selling by Penny or Foskett or the Trust.
i reread it and yes, it's on balance a fair look. the major issue as i see it, is he is projecting $100mm rev for FY14. i am looking at 120mm to 130mm.