RE:RE:Eric Nuttall March 2The annual report recently released before the Ranger takeover gave a year end debt of $987 million and 2023 market outlook indicating an increase to 50% of FCF to shareholder returns by Q3/Q4.
The deal did move up the 50% shareholder returns by 3-6 months and also increased the amount of FCF/share by 20%.
I don't think it was sleight of hand. That's real money, more money in our pockets sooner.
There is nothing bad about this deal. It will take the market some time to digest, but BTE will move up quickly once the weak hands are washed out. I think we are very close to that and the appearance of several new names/traders on the board toward the end of this week is a positive as it shows that there are many others who agree and are sniffing around on a deep value opportunity, but they are watching and waiting for momentum to move positive before jumping on it. For every poster on here sniffing around for value, there are probably at least a thousand more non posters doing the same thing, plus institutions, plus algorithms ready to jump on momentum.
When it turns, it will turn quickly and may gap over night.
JohnnyDoe wrote: This is the one part of this deal that I didn't like because it is somewhat a slight of hand. Currently 25% goes to fcf..long term debt is 939m. They only needed to pay an additional 139m to achieve the debt target and bump fcf to 50%. That was likely going to happen by June anyway.
All the metrics on this deal are positive. The market needs to digest the debt and what comes out the other side of the acquisition.
This fcf your referencing is a bit of a spin. The one thing that is different is paying a dividend sooner, but that is just altering how the fcf to shareholders is paid, not adjusting the %age to shareholders