Virtus Diversified Income & Convertible Fund V.ACV.P

Primary Symbol: ACV

Virtus Diversified Income & Convertible Fund (the Fund) is a diversified, closed-end management investment company. The Fund's investment objective is to provide total return through a combination of current income, current gains and long-term capital appreciation. The Fund will normally invest at least 80% of its net assets (plus any borrowings for investment purposes) in a diversified portfolio of convertible securities, income-producing equity securities and income-producing debt and other instruments of varying maturities, of which at least 50% of total managed assets are invested in convertibles. The Fund has the latitude to write covered call options on the stocks held in the equity portion. The Fund's investment advisor is Virtus Investment Advisers, Inc., and its investment subadvisor is Voya Investment Management Co. LLC.

NYSE:ACV - Post by User

Virtus Diversified Income & Convertible Fund

Bullboard Posts

Comment by NYX2017on Nov 25, 2018 7:06pm

89 Views

Post# 29019612

RE:Share price

As Cormark says, it's a matter of balance sheet fix:

"A transaction could fully fix the balance sheet (notably if JTR sells a brand like Kiju or Central Roast) while also providing a transaction multiple data point (likely 2.5-3.5x higher than JTR’s prevailing 0.4x NTM EV/sales multiple).

Our new $1.25 target is based on 1.0x F2020 EV/sales. This is equivalent to maintaining our prior 1.3x target multiple alongside equity dilution from a $15 MM financing at the current share price that would fix the liquidity issue. If JTR can fix the balance sheet in a more attractive manner (brand deal), there could be more upside."

Bullboard Posts

Calibre discovers significant gold in Newfoundland