Synchronoss sells at about 40 times GAAP earnings (on a current earnings basis). EVOL at 40 times GAAP earnings (i.e. a deal that would be non-dilutive and after merger of ops and sales would be immediately accretive) would be around $16. While they might be willing to dilute, I doubt it, so I would say $16 is the reasonable upside for a Synchronoss takeout. However, if they offered $14, my guess is that Karen Singer & Co. would grab it and run.
Company seems to have a bright future, but they will be taking huge $$ charges in Q3 and no matter how that is spun, it will cause some "headline risk" when it is reported. Also, if rates start to move up ALL of the homebuilders will be high on the sell lists due to fears that mortgages will follow suit (which they will) and chill any expansion in the housing market. Days of no-doc, interest-only, BS loans are over.
Absolutely every metric was strong...all quarterly financials, new orders, backlogs etc. What is really nice is that their financial statements are as clean as can be; no b.s. with tons of peculiar categories....very simple, straight-forward and easy to understand. Nothing "hidden." Now at a $.44/year dividend rate and certainly they didn't raise it with the expectation that they would have to lower it any time soon, so it sends a very optimistic message. I doubt if they can repeat $.14/share going forward, (and that, by the way, is FULLY taxed), but even if they could, then that would be $.56/share annual rate. Along with a rock-solid balance sheet that is worth almost $2, that leaves an $8 current "enterprise value" which is about a 15 multiple, so very, very conservatively valued and lots of headroom to grow into a stock price that is a few $$ higher over the next quarter.
What a nice microcap with no BS around it.
Since Mr. Market was saying the company was worth $5.75 before the cash dividend and the company is now $1.75 poorer, the logic would dictate that the price should seek back to $4 as the "base price".
As usual, you don't have a clue; ignorant cheerleader. The stock, by regulations, opens at the prior closing price less the dividend on the ex-dividend day PERIOD...end of story. If it then climbs $.75 after that, then it might only be down $1 later on...but at the open BY REGULATION the dividend is subtracted. Why do you embarrass yourself with your ignorance??
Shame you have no clue as to what is happening and how GE is becoming embedded into the 5 highest growth industries around the World with tremendous diversification by product line and geography. The Alstom deal was a huge win for Immelt and my hunch is that he "gave" less than he originally expect to get the deal done. The IPO of Synchrony will put several billion $$ in GE's coffers and the swap in 2015 of Synchrony shares for GE will, effectively, be a large buyback of 6-9% of GE's stock in exchange for a piece that the World will be happy to see gone from GE's portfolio. The dividend will be raised in November to $.96-$1 and the stock is going to get upgraded appraisals by analysts and institutions which will propel it well over $30 in the next 4-6 months. Being the sole supplier to Boeing for the engines on the Emirates' $56 BILLION order and the huge Brazilian order are just the beginning. There will be no other company in the World with GE's diversification (protection against any given area of the World sneezing), as well as being a major force in power, aviation, oil & gas etc.
Immelt has done a great job bringing GE back from Welch's mess and his legacy will be the next ten years of GE's ability to reward its shareholders more than those of most of the other major U.S. industrials.
Just so nobody gets freaked out.
Yes, stocks DO go up and down. Today was brutal for the Russell 2000 and EVOL got whacked pretty good. It went up on fundamental good news and perhaps ran past what the news merited. Next information point will be Q2 earnings and YOY and Q to Q comparisons. If they are good the stock should move higher. If they are weak then the stock will move lower back to where the dividend supports the price. No great mystery here as there aren't enough shares in the float to attract shorts or algos here.
Yes, they will show $819 in revenue and net profit. Already telegraphed. This will "blow up" within the next 6 months- 1 year guaranteed. I know EXACTLY what they are.
This is a total BS stock. Somehow people have given this a market value of $400mm??? They owed "related parties" $30mm after showing $6mm in pre-tax profits. Can't you see what is going on?? Better run before all the cockroaches come out from under the bed.
ALL OF THE ABOVE IS MY OPINION
Not sure it is good news, but the S1 was filed so that 7,000,000 shares can be dumped on the market by the original investors anytime they want. Watch out below!!!!!! Many paid pennies/share so even if they might think it could be worth something in the future, it is hard to resist cashing in 100 times what one paid ; )
Obviously you are a desperate bagholder trying to pump this turd. If they had a real business they wouldn't have had to go through a shell company (like all the Chinese garbage companies.) Reason it sold off yesterday was that so many people were bagged in this they headed for the exits with any pop and that will continue. This is a manana stock.....Royalties, milestones, promises, cellulite and curing cancer...all the hot buttons to suck everyone in, but basically they are a one-trick pony. HY has some value and uses, but not $1B worth of market cap.
That is super for the patients, but it won't help them make the first milestone where the clock has already started. This will be dead money till it is determined in a few years if it might generate $1.8B in sales to trigger the next milestone.
Allergan and Valeant will both see some air taken out of their sails tomorrow!!
Impressive earnings and good action after the CC. My guess is the we will see some upgrades and increases in price targets in the next few days as the IB firms need to "rotate." (no comment)
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!).