Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

A O Smith Corp V.AOS


Primary Symbol: AOS

A. O. Smith Corporation applies technologies and solutions to products manufactured and marketed worldwide. The Company operates through two segments: North America and Rest of World. Both the segments manufacture and market a comprehensive line of residential and commercial gas and electric water heaters, boilers, tanks, and water treatment products. Its Rest of World segment is primarily comprised of China, Europe, and India. The North America segment serves residential and commercial end markets with a range of products, including water heaters, boilers, water treatment products, and other. The Company also manufactures expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, related products and parts. Its Lochinvar brand is a residential and commercial boiler brand in the United States. Its water softener branded products and problem well water solutions include the Hague, Impact Water, Water-Right, Master Water, Atlantic Filter and Water Tec brands.


NYSE:AOS - Post by User

Comment by quicksilver545on Aug 23, 2016 2:19pm
103 Views
Post# 25168692

RE:RE:silly prices - Buying at $.13 - Selling at $.15.

RE:RE:silly prices - Buying at $.13 - Selling at $.15. You are assuming that MQL and New Marquee will trade at exactly the same price. Right now MQL is trading with 120 million shares. New Marquee is going to trade, after dilution, with 412 million shares. That is a massive dilution. Of course, you are also, if the deal goes thru, getting about 30M in cash from AOS reserves. Current combined market cap at 26.5M + 26.4M (at 22cents and 12.5 cents) = 52.9M. 52.9M / 412M shares is around 12.8 cents, which is pretty much what AOS shares are trading at. With MQL at 22 cents per share and a trade in of 1.67 per MQL shares, I get 21.4 cents per share valuation for MQL share, again, right around 22 cents. So,no, you are not going to get a 100% return on your AOS shares when New Marquee is created. 

There is also uncertainty as to whether this deal goes thru and requires 66% shareholder approval, or simple majority. Smoothwater has about 15%, and they claim that they have enough to block a deal based on the shareholders that have emailed/responded to them. I imagine they could probably get 34%+ to block the deal, if a special majority is required. Also unsure if the 1.5M non-complete fee will be applicable, given that Smoothwater says the deal isn't legal under TSXV regulations. And if AOS board fights it, you can count on the lawyers draining further cash reserves. 




<< Previous
Bullboard Posts
Next >>