bianji108 Posted August 17, 2018 Share Posted August 17, 2018 The company announced that it will distribute $6 per share special dividend on August 24th. The stub currently has implied price of $0.87. https://www.sec.gov/Archives/edgar/data/1420529/000110465918050436/a18-18486_1ex99d1.htm After the sale of its main business, it will focus on K-12 assessments and the education tour business with the remaining capital from the asset purchase. Wondering where it will trade post-dividend. Link to comment Share on other sites More sharing options...
mjohn707 Posted August 23, 2018 Share Posted August 23, 2018 Have you followed this thing close enough to figure out what it's going to look like after the sale and the purchase of the new business? Link to comment Share on other sites More sharing options...
bianji108 Posted August 23, 2018 Author Share Posted August 23, 2018 Yeah. After the sale & special dividend, the company has $10-$20mn of net cash according to conf call. That's $0.4-0.9 per share. The new business is said to be valued at RMB 50mn, but the # of shares issued for the stock portion is based on pre-dividend stock price. So in reality, the deal price is more like RMB 23mn if we assume a $1 share price after dividend. The business has a guaranteed earning of RMB 4mn next year in the merger agreement. So it is like a 6x P/E purchase. Link to comment Share on other sites More sharing options...
mjohn707 Posted August 23, 2018 Share Posted August 23, 2018 Yeah. After the sale & special dividend, the company has $10-$20mn of net cash according to conf call. That's $0.4-0.9 per share. The new business is said to be valued at RMB 50mn, but the # of shares issued for the stock portion is based on pre-dividend stock price. So in reality, the deal price is more like RMB 23mn if we assume a $1 share price after dividend. The business has a guaranteed earning of RMB 4mn next year in the merger agreement. So it is like a 6x P/E purchase. Did they sell the business for 200M and distribute around 150M? Is that right? And do you have any idea what the rest of the balance sheet is going to look like? Link to comment Share on other sites More sharing options...
bianji108 Posted August 23, 2018 Author Share Posted August 23, 2018 they said in conference call that the $200mn gross proceeds are reduced by $35 tax. Thus, the net cash (after all liabilities) is $10-20mn after the $140mn distribution. The company also has some long-term investments in startup companies. Link to comment Share on other sites More sharing options...
mjohn707 Posted August 23, 2018 Share Posted August 23, 2018 Have you done any work on what the book value and S/O are going to look like after everything? Link to comment Share on other sites More sharing options...
bianji108 Posted August 23, 2018 Author Share Posted August 23, 2018 yes about 350k shares issued after 3 years. I used net cash which is more conservative. Link to comment Share on other sites More sharing options...
mjohn707 Posted August 25, 2018 Share Posted August 25, 2018 Have you done any work on what the book value per share will be after the the sale and dividend? And when are you understanding that the ex-dividend date will be? My broker seems to have contradictory dividend dates Link to comment Share on other sites More sharing options...
bianji108 Posted August 25, 2018 Author Share Posted August 25, 2018 today is div payment date after close. Monday is ex-div Link to comment Share on other sites More sharing options...
bianji108 Posted September 10, 2018 Author Share Posted September 10, 2018 I actually think recently its prices are manipulated by speculators/manipulators, and the company's probably worth less than $1. So it may be a shorting opportunity at this price. Link to comment Share on other sites More sharing options...
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