RE:P/B ratioIndeed, and it seems that accounting for the acquisition makes the P/B ratio even more attractive. I calclutate 1.79 as follows.
Given that the acquired private company, G&G, previously had $10MM equity financing, and assuming that as the whole of their book value (conservative):
$23.3MM (current book value)
+$10.0MM (acquisition book value)
=$33.3MM (total book value)
Then working out price:
78,192,536 (current shares)
+ 24,537,534 (acquistion shares)
=102,760,070 (total shares)
multiplied by todays closing price:
102,760,070 * 0.58 = $59,600,840
So, then P/B ratio is:
$59.6MM /$33.3MM = 1.79.
Any way that I look at, it seems like the market is undervaluing this company. Aparently, Alison Gordon feels the same way, accordint to the recent Financial Post article, where they quote her as "We actually are a highly undervalued company, and there's going to be significant growth in our valuation."
I think of it this way - I had previously (and, again, conservatively) calculated wholesale value of their 2019 at $125MM. Since when does a company with $125MM revenue (next year) have a market cap of ~$47M. Even after the acquisition, the market cap at today's price would be $59.6MM. It simply can't remain that low. The financing will bring it up a bit more, but will be offset by the cash they recieve (i.e., although they don't give a price for the units, it should be a wash as far as P/B ratio goes).
Separately, here's a link to Good & Green's Investor presentation (i.e., as a private company), and they valued themselves at $40MM in June (whereas 48North pays only $14.2MM worth of shares by today's closing price = good deal!):
https://goodandgreen.com/wp-content/uploads/2018/06/Good-Green-June-2018.pdf