Post by
Kanatainvestor on Jun 27, 2024 1:35pm
A very strong chance of a positive conclusion to the review
The chances of this strategic review process closing favourably are very high (75%+). A key driver for this is NEO’s privileged position in a critically important industry and the company debt free structure. The combination of these two factors introduces a very large spectrum of potential corporate and financial buyers. The expansive pool of potential buyers means that NEO will benefit from a healthy bidding process from a large pool of well-funded buyers. The way the stock has been trading since the announcement of the strategic review is another indication that the market believes in a constructive outcome. My guess a deal in the $15-$18 range by Q1/25 at the latest is highly likely.
Comment by
divime1 on Jun 27, 2024 2:04pm
Other positives are $101.7-million of cash and $170.6-million of inventory as of Mar 31 .
Comment by
Possibleidiot01 on Jun 28, 2024 7:08am
$101.7 million minus these commitments -Namco, the majority of the remaining cost to complete of $27.8 million is expected to be spent in 2024 and $60 million for the sintered magent plant. So really $13.9 million in cash. To be fair , these investments should/do have a value but I think it's important to know the $101.7 million is not just cash lying around.