Stocks and real estate. I talk gooder than I tweet. #ESG is stupid.
Jun 25, 2024 • 7 tweets • 3 min read
Some thoughts on $RGS.
IF the company is worth 7x EBITDA (after the Zenoti payment takes debt down to… call it $80m)- that's a $66 share price if they can do $35m in EBITDA (which ain't a stretch).
7x at $35m estimated EBITDA = $245m market cap. Less $80m of debt = $165m equity value. With 2.5m shares outstanding, that's $66/share.
With a new $25m line of credit- one would think they will be in small-time growth mode. So, maybe a higher multiple is justified? But remember… this is a franchise business… so with $25m of a credit line, plus the money they will now cash flow from interest payment reduction, they can do a lot of exciting stuff.
This also works for the creditors because, with the warrants, they should get some of their debt forgiveness back pretty quickly. And the company gets a marginal amount of cash to pay the bankers.
I can't believe the strategic alternatives happened this quickly- and I certainly can't believe they worked this well!
The next order is if and when they can refinance this reduced but still existing high interest debt. Get that rate down even more!
If you have yet to- I strongly suggest you read this on the $rgs Investor Relations website.
$LOAN trades at about 150% of book value. The key difference between it and $AAMC is that $LOAN keeps all of it's loans on it's books- whereas $AAMC keeps loans on its books AND sells them off.
stocks.apple.com/AJxXKZImdRh-vG…
Same story with $SACH. Trades for a premium to book value, but keeps all it's loans. Doesn't really sell any loans opportunistically or for fee origination like $AAMC does.
It seems VERY clear that $AAMC didn’t have to redeem all of Luxor’s preferred stock… I just don’t see the case that Luxor has.
iapps.courts.state.ny.us/fbem/DocumentD…
This is especially the case when in the offering docs, they clearly state that the funds need to be legally available. If payment bankrupts a company- that ain’t legally available…
Oh, and the icing on the cake? Luxor’s attornies drafted the pref docs.
Apr 22, 2022 • 4 tweets • 2 min read
$AAMC “intends to bring a lawsuit against former director, Nathaniel Redleaf, Luxor, & certain of its funds and managed accounts, for breach of fiduciary duty, aiding and abetting breach of fiduciary duty, and breach of contract.” (paraphrased) seekingalpha.com/pr/18760165-al…
Makes me wonder what all came out in discovery? @futureformerJD do you have any thoughts?
I'm looking forward to the $AAMC lending operations getting rolling and all that. Plus- CRYPTO ATMS w/ @ForumPay look to be really exciting. #Bitcoin#Ethereum#DogecoinToTheMoon
