Zdravím, jak jistě víte, pokud mě sledujete na twitteru, micro-cap prostředí je aktuálně plné extrémně zajímavých příležitostí, bez ohledu na to, zda mají katalyzátor, či nikoli.
There are number of reasons to think, the sale will happen soon (ex. announcing potential sale through strategic alternatives). Also we need to look beyond Tim Eriksen. The biggest shareholder wanted to buy the company few years back at a NCAV, cause the old management was destroying value and wasnt working especially for the shareholders. That position was and still is their biggest allocation in their portfolio and their only activism. They had lots of non-recurring costs and things those needed to be solved - like litigation from terminating the contract. Those expenses are finally settled and company will finally accumulate the cash on BS. Also cleaning the expenses will result in higher net-income and potential higher bid price, to provide at least somewhat satisfactory return for the activist fund. Also check the bonuses the CEO will receive if he managed to sell the company. Consider the potential savings, private buyer would get.
So those are the reasons I believe the sale will happen soon. They want to do so. However, if they dont get a good price, my thesis has many variables. They are improving the operations by focusing on higher margin IT business. Currently company trades at 8x Price/Earnings ex cash and recently grew earnings very nicely.
Super analýza. Ale moc nevím, jaký PE fond by šel do toho kupovat něco tak moc human-intensive a competitive... ten byznys model bude velká překážka imo. Jedna věc je osekat náklady, druhá věc to někomu dalšímu prodat.
Děkuji. Nemusí to být žádný fond, nýbrž kdokoli z řad Private Equity, nebo akvizice větší společností, kde by to dávalo nejspíše podobný smysl. Aktivita PE transakcí byla v roce 2022 na úplným vrcholu a často cíle měly nižší marže a horší BS, než má TSR. Vše má svou cenu. Osekání nákladů při stažení z burzy je to nejsnadnější.
Pardon, máte pravdu. Uvažoval jsem soukromý kapitál, tedy i oportunistické investory, kteří by se stáhli a delistovali společnost z burzy - je jedno zda by byli z PE fondu či ne.
Eriksen is on the company since 2018 and didnt avoid sucession problem.
Why you think the sale will happen soon?
There are number of reasons to think, the sale will happen soon (ex. announcing potential sale through strategic alternatives). Also we need to look beyond Tim Eriksen. The biggest shareholder wanted to buy the company few years back at a NCAV, cause the old management was destroying value and wasnt working especially for the shareholders. That position was and still is their biggest allocation in their portfolio and their only activism. They had lots of non-recurring costs and things those needed to be solved - like litigation from terminating the contract. Those expenses are finally settled and company will finally accumulate the cash on BS. Also cleaning the expenses will result in higher net-income and potential higher bid price, to provide at least somewhat satisfactory return for the activist fund. Also check the bonuses the CEO will receive if he managed to sell the company. Consider the potential savings, private buyer would get.
So those are the reasons I believe the sale will happen soon. They want to do so. However, if they dont get a good price, my thesis has many variables. They are improving the operations by focusing on higher margin IT business. Currently company trades at 8x Price/Earnings ex cash and recently grew earnings very nicely.
I hope it makes sense.
Super analýza. Ale moc nevím, jaký PE fond by šel do toho kupovat něco tak moc human-intensive a competitive... ten byznys model bude velká překážka imo. Jedna věc je osekat náklady, druhá věc to někomu dalšímu prodat.
Děkuji. Nemusí to být žádný fond, nýbrž kdokoli z řad Private Equity, nebo akvizice větší společností, kde by to dávalo nejspíše podobný smysl. Aktivita PE transakcí byla v roce 2022 na úplným vrcholu a často cíle měly nižší marže a horší BS, než má TSR. Vše má svou cenu. Osekání nákladů při stažení z burzy je to nejsnadnější.
Kdokoliv z řad Private Equity? Kdo jiný než PE fondy je v řadě Private Equity?
Pardon, máte pravdu. Uvažoval jsem soukromý kapitál, tedy i oportunistické investory, kteří by se stáhli a delistovali společnost z burzy - je jedno zda by byli z PE fondu či ne.