It would seem to me that both sides have a lot to lose if a deal was nixed.
Signet got a huge boost when the deal was announced and at least half of that would disappear if the deal was called off.
Similarly, ZLC could fall to $15-16 if the deal was called off.
I own a little ZLC and I would like to see a $23-24 deal announced to satisfy ZLC holders.
But, between the proxy advisors and the ZLC fighting to tooth & nail to make sure ZLC holders don't get a dime more, I don't like the odds.
I mean, I guess theres a 60% chance of getting $21
Maybe a 10% chance of $23
Maybe a 10% chance of getting $24
10% at getting $25
And 10% that the deal gets called off and it falls to $15.
Added up it gives me a present value of $21.30.
And with the price at $21.90 maybe selling now is a prudent bet ?
Hopefully they wont have to sell it below book value which was $2.13 prior to offering associated expenses.
In any event, Im sure the underwriters will take a nice chunk so they might have to sell at $2.50 to net $2.13.
How many $2.25-2.50 stocks pay a 28 cent dividend ?
What kind of demand will the shares have in the offering ?
The offering does resolve the issue of Rans 50%.
This is a firm commitment offering of 2,500,000 common shares of Manhattan Bridge Capital, Inc.
We intend to elect to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes, beginning with our taxable year ending December 31, 2014 or as soon as possible thereafter. To assist us in qualifying as a REIT, we will amend our certificate of incorporation to prohibit any shareholder, other than Assaf Ran, our chief executive officer, from owning more than 4.9% by value or number of shares, whichever is more restrictive, of our outstanding shares of capital stock, including our common shares. In addition, our restated certificate of incorporation will contain various other restrictions on the ownership and transfer of our common shares. We also intend to increase the annual dividend declared in February 2014 to $0.28 per common share commencing on August 20, 2014 and we intend to maintain our latest annual dividend until the earlier of twelve months following completion of this offering or the effective date of our REIT election, unless actual results of operations, economic conditions or other factors differ materially from our historical operating results or our current assumptions.
I really don't think you can force a private company to release information just because a public company owns some of them.
Do you think they can grow this without a top while still maintaining strict underwriting standards ?
And take a look at the long term chart. Ran has lost his original investors a LOT of money over the years.
Poster below said they could payout 25 cents a year.
Regardless of how much they pay out, I don't think it will command a 5% yield. More like 6-7% but even that's a big increase from current levels.
In Q1, LOAN earned $0.05, with nearly $0.03 paid in tax, annualized this equals $0.28, allowing for a 90% payout or $0.25/share!
Assuming LOAN becomes a REIT, share price will be much higher not only based on tax saved, but more importantly when it is rerated as a REIT, valuation will be based on yield as opposed to a unclassified microcap finance company
Well, its AFTER the casino opens, not right away.
Just seems like too big a discount to me.
On May 15, 2014, a wholly owned subsidiary of Lakes Entertainment, Inc. (“Lakes”) entered into an Amended and Restated Option Agreement (“Amended Option Agreement”) with Penn National Gaming, Inc. (“Penn”) relating to land, currently under option by Penn, owned by Lakes and located in San Diego County, California, adjacent to the Jamul Indian Village reservation. The original option agreement by and between Lakes and Penn provided that the purchase price for the land would be $7.0 million, increasing 1% each year, but that Penn had no obligation to purchase the land. The Amended Option Agreement reduces the purchase price of the land to $5.5 million but requires Penn to purchase the land within ten days after the Jamul Indian Village opens a casino on its reservation
Does the Q mention how much he paid for Maxim and 1st Guard ?
I admit it, I don't usually read them. Which is why I would appreciate a longer press release 4 times a year.
I hope so. But Im going to feel like a patsie if we only end up with $21. Or worse, the deal gets called off and we fall back to $15.
ZLC sure seems to want to FIGHT against their own shareholders getting a penny more.
Just under 550,000 shares out of 44+ million shares out.
So IF they sell more, its not going to mean much.
Becker is still chairman despite some wording in the standstill agreement that suggested the board can oust both Becker & Willis at the time they went under 4% which they did not do.
Messrs. Becker and Willis have irrevocably tendered their resignations as director effective as of the date that (a) the beneficial ownership of the Becker Drapkin Stockholder Group in the Company's common stock falls below 4% of the outstanding shares of Company common stock or (b) the Becker Drapkin Stockholder Group breaches certain of its obligations set forth in the Standstill Agreement
(subject to a five-day cure period), and, in each case, the Board may accept either or both such resignations, in its sole discretion, by a majority vote (excluding Messrs. Becker and Willis).
I have no idea if he plans to stay on the board for years to come or sell out & step down but I am 100% sure he still has to file form 4s and will be for at least 6 months after stepping down from the board. So we will know within a few days of when he sells.
05/15/2014 P 10,000 A $ 14.08 = 29,438
Terry Burman, age 67, has served as a director of Tuesday Morning since February 2013. Mr. Burman was the Chief Executive Officer of Signet Jewelers Limited (Signet), a specialty jewelry retailer, until January 2011. Mr. Burman joined Signet in 1995 as the Chairman and CEO of Sterling Jewelers, Inc., a U.S. division of Signet. Before joining Signet, Mr. Burman held various senior executive positions of increasing responsibility with Barry's Jewelers, Inc. from 1980 to 1995, including President and Chief Executive Officer from 1993 to 1995. Prior to that, Mr. Burman was a partner with Roberts Department Stores, a regional department store chain specializing in apparel. Mr. Burman also served on the Board of Directors of Signet until January 2011. Mr. Burman has served on the board of directors of YCC Holdings LLC, a retailer of candles, fragrances and other products, since October 2007 and has been the Chairman of the Board and a director of Zale Corporation, a jewelry retailer, since May 2013.
05/15/2014 P 3,000 A $ 14 99,941 I By Rouleau Family Revocable Living Trust
05/16/2014 P 3,000 A $ 13.75 102,941 I By Rouleau Family Revocable Living Trust
We are going to get $23-24 anyway. TIG brought up good points.
Signets market value tanks without the deal. ZLCs projections alone gets the stock to $25.