Spin-off Carve-out Stock Dividends

[Argyll]

The company has $88 million cash and 11.2 million shares. That should give it a valuation of $7.85, which it obviously does not reflect.

After the dividend it will have $50 million cash, which would give a valuation of $4.46 per share on a pure cash value basis.

The pps so far doesn't reflect either valuation.

The CEO says he is looking around for business opportunities. Considering $50 million, the interest it earns, and almost no overhead, that could be a significant possibility. He said if nothing comes up, the rest of the cash would then be distributed to the shareholders. If the latter happens, the worst case scenario is $4.46 a share (after the 3.31 a share you're getting Feb. 15 if you own some now). I got the impression that he expected to look around for the next six months or so.

So far I've only bought 100 shares to see what happens.