RE:would love to know ...My view is that there is a ton of liquidity available for them to deploy though the combination of:
- Investments that are maturing (funds & debt) that should free up $190+ million over the next few years;
- Operating cash flow being generated; and
- Debt... the company is debt free and could use the shelf prospectus to borrow for the sake of borrowing; OR, borrow with the intention of repaying based on the return of investment capital.
Management has quite a few tools available to them should they find an opportunity to deploy capital. They need to demonstrate that they can (1) continue to execute in deploying capital AND (2) what they have deployed gets back to generating the return that was envisioned at the time of acquisition.
The next question is... what is out there for them that meets Knight's acquisition criteria!
LR