Superior Plus Corp T.SPB

Interesting response

[SusanBolland]

Well thats an interesting reaction from the market....  When SPB anounced the delay in the Kamps acquisition, its share price fell 3.5% to 4% but when they get the deal done the share price goes nowhere...

[soup4lunch]

They are likely buying/merging with SPH, so who knows how that gets financed and structured? s4l

[SusanBolland]

It appears the purchase price of $300 million Canadian for Kamps is being financed by Superiors credit lines.  Even after the purchase they still have aprox 260 million available on the lines, so no need to do an equity isssue at these low prices. Yes their debt is a bit high but should come down significantly in Q1 because its their biggest cash flow quarter by far... They also probably have

[soup4lunch]

Nice post. Thanks! I believe the risk/reward is very interesting here, with the assumption that they can do this pureplay morph, thus becoming an integral part of a larger ecosysem. s4l