500 million frittered awayAfter Italy closes, they will have spent all the cash plus marketable securities as of Dec 31 and then some.
Plus they will have spent 20 million on closing costs for the 2 deals
There was no 75 million buyback as promised when they had 500mil , there will be no $100 buyback with no cash. Especially if it elevates Mithaq.
There will be no tax loss utilization unless the acquired companies had their own losses.
If they can get a loan against EBITA as planned, they will pay a hefty rate. With the governance gong show, would you lend to them. Not much capacity to do more M&A as promised.
Portfolio of investments yield nothing. Kognitiv losing money. Used car market is apparently tanking, what is the impact on big TradeX investment. Can any of this be liquidated for cash.
Money will be needed for 230 million of pref shares.
The overhead is high and will need to be paid from cash flow of the businesses- but so will interest on debt, pref share dividends. No more cash from Aero Mexico plan and cash reserves.
Paladin gains at shareholder expense- free 20% call option, carried interest in profit above 8%, and they get an undisclosed success fee. They are treated better than shareholders.
Maybe there is a miracle somewhere to unearth value, but are these guys capable of getting it to shareholders.
Their actions speak loudly.
Anyone have any positive views to share, i don't see any.