Big overreaction to that merger failing. If it was appealing at 18, how much more at 6? I like the idea of suspending dividends and focusing on long-term value creation
The stock is clearly too cheap to remain public as it is now priced at less than 2x EV/EBITDA. It would likely be worth more as a private company. I think the board and management is probably looking for other ways to maximize value for shareholders. I would guess that they would be shopping it to private equity. That being said, there are heightened risks given the weakness in new customer acquisition and the debt load. Cutting the dividend actually reduced some of the near term risk, however, because they now have $45 - $50 million freed up to pay down debt.
Big overreaction to that merger failing. If it was appealing at 18, how much more at 6? I like the idea of suspending dividends and focusing on long-term value creation
The stock is clearly too cheap to remain public as it is now priced at less than 2x EV/EBITDA. It would likely be worth more as a private company. I think the board and management is probably looking for other ways to maximize value for shareholders. I would guess that they would be shopping it to private equity. That being said, there are heightened risks given the weakness in new customer acquisition and the debt load. Cutting the dividend actually reduced some of the near term risk, however, because they now have $45 - $50 million freed up to pay down debt.