Tangelo Games Corp. IPRSF

Consolidating sector

[willis888]

i just saw that nyx got bought out and put out of their misery. There has been lots of other buy outs in the sector. Tangelo is one of the last ones and hopefully we get taken out and put out if our misery!

[Marenzio]

Can someone like Iscfa please do a calculation using the buyout price of NYX as to what GEL could be bought out for? Thank you

[lscfa]

NYX is being acquired for about 11x ebitda so my previous calc of fair value stands.....   Assume transition to mobile increases yearly ebitda from $10 million to $15 million   using a multiple of 10x => $150 mil enterprise value   $150 mil + $4.5 mil cash - $88 mil debt = $66.5 mil equity value   $66.5 mil / 220 mil shares = $0.30 per SH.    

[lscfa]

p.s. NYX has $515 mil of debt & pref shs. vs. the $260 mil equity .......

[Bangkokboy]

Thanks ISCFA.  "NYX has $515 mil of debt & pref shs. vs. the $260 mil equity" What you've pointed out puts things in perspective, as it's the value or UNlocked value that others will see. Let's see what happens from here.   

[Marenzio]

Thank you Iscfa, there is hope for us yet!

[lscfa]

p.s.s..... Ebitda Margins    NYX  28.7% Q2 28.6% H1   GEL 26.8% Q2 26.9% H1  

[Lendlfan]

Yep - those EBITDA margins is what has been keeping me confident that we will be bought out sooner than later. It would be a different story, if their EBITDA margins wouldn't be keeping up with the industry, but they are and they are not bad at all. Once this large principal re-payment is made, then the rest of the debt will be serviceable and their future growth opportunities will fund it.

[lscfa]

Someone recently brought up debt/ebitda ratios so lets compare: NYX 515/68 = 7.6x     GEL 88/10 = 8.8x

[Champ87]

Having a hard time understanding why it hasn't happened yet...TEC must be really not collaborating, but why? It seems they have the most to lose...