NEULION, INC. T.NLN

sale

[greenlantern64]

Is this considered positive or negative?

[BillXMA]

Prior to sale company had about $31M USD in normalized cash (cash less excess AP of around $23M).  Add in a conservative $39M from the sale (accounting for transaction costs and one time severance costs associated with the restructuring) and you have a total net cash balance of $70M USD or $90M CAD.  The market cap of the company at today's close of 0.41 was about $114.4M CAD, so

[NYX2017]

Actually revenue for 2017 is about $96M, not $74M.  About $120M CAD in annual revenue, with a market cap of $115M CAD, $100M CAD in the bank, and zero debt. Need to say more?...

[BillXMA]

That revenue is before the divestiture of $20M in DIVX revenues.  On a pro forma basis 2017 revenues for NLN should be around $74M, maybe a bit lower depending on where Q4 comes in.  The current cash balance of $53M USD is inflated by a large seasonal payables balance which will reverse in Q4.  Company should end 2017 with closer to $31M USD in cash  That plus $39M in proceeds

[longsolo]

However you look at it. This stock looks and remains a bargain. " This rough US$160 million valuation represents the operating business and doesnt include the net cash position. So even ignoring the cash, the stock still looks incredibly cheap" motley fool