Yes, it should since they are "unlocking" this high PE business hidden inside a unit that most people don't think belongs within GE anyway.
Aside from the very bullish earnings release with large backlog increases and bookings which will turn into revenue in the subsequent quarters of 2014, two very exciting "futures" were discussed:
a.) Because of the level of focus that people have while activating a phone, the future may bring the ability to offer certain apps to these people as they are activating (i.e. Facebook, Walmart) which they can download AFTER they are done activating where the carrier will receive revenue and EVOL would share in that.
b.) Telespree (their new acquisition) has a division, Dataspree, which offers M2M (about the hottest market around) products/services. The first three of these focus on trailer/container tracking, vehicle tracking and temperature-sensitive cargo tracking.
Looks like Dupper has found another potentially huge revenue stream.
They will be doing an IPO of 20% of their consumer lending group which includes their private label credit card business (which handles Walmart, Vonns, Lenscrafters, Lumber Liquidations, AMAZON etc.). These business have a much higher PE than GE (which is why they are spinning it out!).
sxm...Thank you...I had read the transcript also and was scratching my head about that as I just can't see him breaking the tax-free aspect of the entire deal. However, we will all find out in about 3-5 weeks as I think the "ask" should be coming shortly and then, as Sherlock would say..."The Game is Afoot"..
Malone will only do a tax-free exchange. Putting one penny of cash into the deal voids that and he will not do. What he might do is provide a "collar" with a minimum $$ guarantee for the value of the SIRI shares at the time of the exchange, where the ratio would have to be ratcheted up if LMCA's stock sagged to the point that the equivalent value was under the minimum.
Malone already thinks Liberty is undervalued and since that is the only currency he can use it is highly unlikely he will increase the ratio very much. My personal prediction (not worth tea leaves probably) is that the ratio DOES go up 10% at the maximum and then they take it to a vote. It may very well not pass since there are a lot of institutional holders, aside from the more vocal individuals, who are not happy with the valuation. However, the "news" has not been great and the institutions might decide that the $3.75 (or whatever) value is better than risking that the "unleashed" (since the SIRI price has been trading as a slave to LMCA) price drops if the deal breaks given lackluster Q4, vague and disappointing guidance, Apple's getting more closely into bed with all the major car companies (albeit that SIRI's product DOES make a huge difference), and now the sword of Malone hanging over the company with investors not knowing what move he may make in 3, 6 or 12 months to try and suck value out of SIRI again.
The magic numbers. So if the deal were closed today the value in your account for your SIRI stock turned into LMCC would be $3.41 tomorrow AM. If they up the exchange ratio by 10% that means it would be $3.75. Not a lot of upside from here, for sure.
Congress is going to crush these patent troll companies. Bad area to invest in!! Also, they just keep giving out tons of free stock to the insiders....over 1.5million given today!
However, I expect that over the next few weeks some larger holders may decide to play with their
money elsewhere, so could bleed down for a while and then stabilize.
Like the company, didn't like the message. If I can get out over $4.20 by 9:45 I will go; if not I may be trapped.
I think they were just being opportunistic and if they feel the price was attractive, then that is bullish for shareholders!!
Will you buy at $1.35, $1.20 and $1. Check to see how much compensation is given in the form of free stock to the insiders. Check on the new legislation coming to put a halt to patent trolls. Of course the people behind this company only lost billions in its prior incarnation, so this time they have only hundreds of millions left to lose. Sucker!!
This stock is being totally CRUSHED...much moreso than outside factors would indicate. Something smells rotten in Denmark (as well as with CCG). Typically when a stock moves like this there is an underlying reason which will surface later on. Then the lawsuits follow and it really gets killed. Don't get lured in by the yield as the 7% is small-time compared to the $3.50 this has lost in a year!!
You have started to sound like a typical "pumper"/bagholder. Just because you bought at $1.80 doesn't mean that you should try and salvage your lousy investing decision by trying to coerce people to buy this dying company.
They pay themselves ENORMOUS salaries and keep diluting the stock. This is a dog with fleas where only the fleas will get fat. The death nell for them was when Congress moved towards the creation of the Innovation Act. Puts a huge cap on them and also check to see that they bought a variety of patents for X dollars which now are valued by the market at 3X with no change.
If they up it by 10%, then it will be $3.82. If Liberty stock drops then it will be worth less.
I am sure they would rather have seen the stock drop back to $3.38, but $3.68 is not exactly a crushing blow since most were short at much higher prices. This may trade higher based on Liberty Prices, they most shorts will arbitrage with Liberty stock on Monday to cap their price at $3.68 and then take their time to get out while the jerks on this board blather about someone else bidding higher (NOTTTT!!)