Urthecast Corp T.UR

RE:People on this board are beginning to worry me...

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It's been my experience with acquisitions that the acquirer's sp usually takes a hit initially, regardless of how positive the acquisition is. That's the part of the market action that is based solely on emotion. In this case I think people are uncomfortable that there is an appearance of dilution and UR's balance sheet becomes a little muddy with the little bit of debt.

I think we'll hover around the mid $4's until those more conservative investors see proof that the business is going to produce in line with some of the estimates.

You don't have to dig too deep though in the press release or the new corp presentation posted on their site to see exactly how UR is going to benefit from this deal. It opens up a huge customer base UR didn't previously have access to and would have had to work their tail off to try and capture fractions of. Elecnor obviously has the expertise to launch satellites into orbit. Their partnership with the European Space Agency is huge as now UR has the world's 3 biggest space programs on their side (NASA, Russia and now ESA).

On top of all that, they are getting approximately $11M-$15M of EBITDA right away. That's anywhere from $0.12 to $0.17 per share which in my mind makes up for any of the dilution.

In their own words, this acquisition accelerates their plans to become not only CF positive, but significantly so much sooner.

If UR wasn't such a big part of my portfolio now I would by more at dips below $4.50. Unfortunately (or fortunately) I'm overweight in UR as it is, but am happy staying this way as I believe the downside risk is minimal and the upside is enormous. The chances of UR beating earnings and CF estimates for the next few quarters is great IMO. I want to be a part of this companies growth, at least through 2017 and potential into 2020 when they launch their constellation satellites.

If anybody here is familiar with business combinations I'd be interested to hear your perspective on how this could help/hurt UR in the short and long-term. GLTA.