|Shares Out. (in M):||32||P/E||0||0|
|Market Cap (in $M):||23||P/FCF||0||0|
|Net Debt (in $M):||0||EBIT||0||0|
Approval of liquidation. Adoption on Liquidation Basis Accounting. Liquidating dividends paid over next 12 to 18 months.
|Entry||02/13/2018 12:13 PM|
Thanks for the write-up, very interesting idea. Had a few points on which it would be helpful to get your take: (i) any potential capital gains tax from the asset sales (the company doesn't seem to expect any and curious as to why), (ii) do you have a sense on the valuation of the remaining assets; agreed that if it was lower they would have taken a write-down, (iii) expected timeline for this to play out. Also, it seems that it has been solved but they had a material weakness.
|Subject||Re: Few questions|
|Entry||02/13/2018 07:07 PM|
Thanks blmsvalue. My understanding is that C-corps get the benefit of washing realized losses versus realized gains if it is in the same category. Losses in equity investments can't be washed against gains in the operating business, for example. But any gain is taxed at ordinary income rate (ordinary corporate rates, which I guess is now 21%) - there is no capital gains specific tax rate within a c-corp. That being said, I dont know if the opposite is true: Having capital gains in the equity category and washing against losses in operating business. I have made inquiries with a friend that brokers "pre-ipo" stocks and he is going to see what he can dig up. Normally these companies have the ability to use right of first refusal on transactions, and my guess is that they know the valuations where people have been "rofr'd" according to the lingo. I'm hoping that is where they got the range of valuations. Based on what they realized from a partial sale of Instamed, they have some nice gains there. THe company thinks they will complete the liquidation in 12-18 months. My experience is that liquidations always take longer than predicted. Lastly, to be honest, I didnt read the part of the 10k describing material weakness until you brought it up - but it appears to be in the past but doesnt add comfort. I expect a preliminary proxy to be issues this week, and hoping there is more analysis available to determine remaining value.
|Subject||More detail on potential asset values|
|Entry||02/15/2018 02:41 PM|
Really interesting write-up.
It seems as though the asset side of this arithmetic exercise is predominantly driven by 3 things: 1) corporate cash in excess of the, expense burn rate, severance obligations, and other liabilities (lease buyout?, litigation?) in the wind down; 2) the value of ACTA's stake in InstaMed; and 3) the value of ACTA's stake in Parchment. Other items like Anthem's holdings, the release of the GovDelivery escrow do contribute to the math but are less significant. Have you been able to identify any specific gauge of the value of those two businesses, like how they were valued at their last fundraising rounds?
|Subject||Re: proxy out|
|Entry||02/28/2018 06:26 PM|
Havent had a chance to read thoroughly, but it appears that they raised the top end of their estimate to 2.07. A positive development I think. Will read full proxy and see if something else jumps out. Thanks for the heads up.
|Entry||06/22/2018 04:21 PM|
8k today....43 cent dividend.
|Subject||Re: first distribution|
|Entry||06/24/2018 12:40 PM|
Is this at all telling in terms of what total distributions might amount to?
|Subject||Re: Re: Re: first distribution|
|Entry||06/25/2018 11:31 AM|
The range was updated from $0.80 - $2.07 ---> $1.06 - $1.96
For what it's worth my model has $1.31 given the final purchase price adjustment