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No worries
I didn't have time to do the math, but it looks like it was very close to the record dollar volume.
Long way to go here.
Was Friday a record on a dollar volume basis?
Curious how the price effect impacted that metric.
Acquisition structuring
To elaborate on your post, some additional thoughts on acquisition structuring (I was an investment banker in a former life, and advise small companies in the areas of finance and operations in my current life).
1. Typically, companies like TDS (size, growth, capital resources) will issue convertible preferred in transactions. The preferred converts at a later date and presumably with the common trading at a higher valuation/price (ie. effectively issuing an out-of-the-money call option to the target) to minimize dilution. In the process, the float will remain small until the preferred converts AND the shares are registered. We're typically talking at least 6 months, but oftentimes it can take a year or more for shareholders in the target to convert.
2. There's usually an earnout provision in deals for early-stage companies to minimize risk for the acquirer. This also reduces the upfront consideration and usually minimizes dilution to some degree.
3. Share structure and uplist. It's in TDS' best interest to maintain a share structure that "organically" allows the share price to reach uplist levels. I know others have made this point, but thought I'd re-iterate to emphasize the point.
My thoughts on valuation and the stock
In case you missed it, here goes again:
My thoughts on valuation:
1. Private market value as of the last funding round, in August, was almost certainly at least $300mm. Since then the comps have exploded higher and $NOW has raised the bar even higher. Double that to just account for rising public comp valuations and assuming a max share count and we're still talking about a $3 stock. Keep in mind, that's a very conservative target and EXCLUDES the B2B database acquisition and CreditSafe. Those acquisitions also won't be reflected in historical financials.
2. Valuation for emerging companies like this in "hot" areas is driven not by trailing revenue or EBITDA, it's driven off of expectations in the future. Look at $NOW. Yes, it does generate meaningful revenue, but no one in their right mind would say it's valuation is justified by trailing or even 1 year forward revenue. It's based on estimates of revenues well into the future. That's what growth investors look at when basing their investment decisions. With respect to $SNOW, it's now trading at ~175x forward revenue. TDS talked about CreditSafe alone achieving run-rate revenues of $80mm by year end 2021 and that's just going to be one part of the business.
3. Float. The float is going to be very small in relation to the potential market cap. Consequently, from a trading perspective, the stock is almost certainly going to overshoot "fair" value, particularly given the current market backdrop.
I see a bright future for the stock and as we get more information, we'll be able to set more accurate price targets. That said, I think we're trading at a small fraction of the potential value. Looking forward to seeing it play out.
Mkt cap still only ~$17mm, look at $NOW
Laughable, but many more catalysts ahead.
Been posting on the Lotto and Under the Radar board
I've been posting on other forums too.
Thanks
Appreciate the effort to attend the meeting. Look forward to hearing from you afterwards.
Great to see all the hashtag references
Including markets and forex...curious if they are also competitive now with IHS Markit/S&P?
Mkt cap barely $12mm
Keep that in mind for perspective if you're a prospective buyer. Long, long way to go here.
Listening to Come Sail Away right now
Perhaps I'm dating myself, but seems like an appropriate tune given the moment.
If you aren't familiar with that tune, you're probably a lot younger than I am.
TDS liking tweets about the vote
Hope this means they're ready to act on next steps.
We're in great shape
I'm highly confident we'll cross the 50% threshold, but we should all post the occasional reminder on this board and any other forums that make sense.
I added some shares this week and wanted to wait until closer to the vote before re-submitting my total. I think there will be a few others in a similar situation.
Thanks
Between your additional shares and mine, we're almost halfway to making up the difference.
Have 45k additional shares to add to my proxy
That covers a meaningful portion of the required additional shares. If you have additional shares, please send in a revised proxy to put us over the 50% threshold.
Just received a message from Ben
We're at 49.1% and only need an additional 225k shares to reach the 50% threshold. That said, we're well above the required level for a quorum.
Mkt cap is laughable
B2B data
B2C data
Data management (storage, blockchain)
AI
More..
I'm sure there's lots in the hopper that we don't know about. The company has basically been silent for a month as the merger approval process plays out. I would imagine they'll have lots to say once the formality of merger approval happens on Friday.
Going to be fun
Watching OTC investors chase this one hard after Ben's tweet confirming, what we all know, is approval of the deal.
I didn't fill in anything
That blank is only if you hold shares in a corporation of LLC as stated below. I left mine blank and asked Ben to confirm if I needed to do anything differently. He said it was fine (and I own a lot of shares, so I'm fairly certain he double checked my proxy).
"If you hold shares in a corporation name you will need to appoint a proxy (Example: if you had the shares held through your LLC or Corporation). I am happy acting as proxy in this case and will vote your shares at the meeting as you specify on the ballot. If you as an individual hold shares you can simply vote your shares, sign and return to me if you are not attending in person. Your shares will be tallied at the meeting. "
Any updates from Synergy?
Figured I'd ask the board rather than pestering Ben. I would imagine we're close to if not over 50% at this point. Cleared the quorum easily, which is great.
Looking forward to Ben's tweet on Friday and some meaningful updates from the company thereafter (hopefully next week, they've had enough time to prepare!).
Print, fill out, scan and email back
Make sure to indicate the shares you own and sign at the bottom. Just email it back to Mr. Berry at Synergy management.
No, there isn't one
End of story. This is an incredibly good outcome for CLHI shareholders.
Agreed
-Vote will pass, we all know that. Optically, it would look good to cross the 50% threshold, so any stragglers need to submit their votes, but we have a quorum. I think it's impressive shareholders got this done given there wasn't a normal proxy solicitation.
My fingers are crossed only in the sense that I hope TDS has the long-awaited PR ready and is prepared to file shortly thereafter. They've had plenty of time to get their ducks in a row.
Meeting is at Noon Central time on Friday (12/4)
Given almost all shares will have been voted electronically, and Ben has been tallying the votes on a continuous basis, we should get word well before the market closes.
I hope TDS has a PR ready to issue on Monday morning.
Check out T$NP
Mind boggling move. Almost a $1bn market cap.
Thanks
Even better if TDS releases a PR. I'm sure they're champing at the bit to broadcast that they're a public company.
Company Twitter feed
No posts since Nov 6th. Good sign in my view as they are apparently waiting for Dec 4th and then can release the Kraken so to speak.
Hope the two (or perhaps more at this point) compliance officers have done their work to get everything set for after the merger vote. Given their strong backgrounds in this area, I would imagine everything is teed up.
Notice Snowflake
Trading up at least partly due to this deal. Valuation is north of $90bn.
CLHI- Huge potential after deal approved on Friday (12/4)
TDS is reverse merging into CLHI. TDS is a data supplier with two significant acquisitions lined up to close after the merger is completed. One of the acquisitions is for the largest B2B database in the US, which will make TDS a direct competitor to ZoomInfo (market cap over $19bn).
The current valuation is a joke at $6.5mm with comps like Snowflake trading at valuations north of $90bn. The share structure is phenomenal with ~24mm shares outstanding and a float substantially lower.
Shareholders are going to approve the deal this Friday. Synergy is spearheading the process and Ben Berry owns stock in this company.
The time to get in is before the deal as the stock will re-rate significantly higher after shareholder approval.
Another data deal
While not directly related to TDS (at least based on what we know so far, correct me if I'm wrong), but S&P is buying IHS Markit for $44bn.
The comps are trading extremely well and better than the Aug/Sep time frame when we originally thought the deal would be completed. If there's one saving grace, it's that this deal is most likely going to get done at close to peak comparable valuations.
OTC traders are typically reactionary
Not anticipatory based on what I've seen. They'll wait for confirmation (even though we've already received it) that the deal is going through and TDS is the surviving entity. At that point, FOMO will kick in and the stock will re-rate to a level much more commensurate with the relative value (ie. versus the comps).
I imagine when Ben tweets that shareholders approved the deal on Friday, we'll see a huge spike.
Thanks
Since you're going to ask, I'll spare Ben the necessity of responding to another email.
Interesting data point
Hard to gather much information on the entity that T$NP is merging with, but it appears to be a mobile payments startup. I think TDS is a better business and it obviously has very attractive comparable valuations, which you've highlighted many times.
I hope once the vote makes the merger ostensibly "official", we'll start to get PRs in short order.
Even a maxed out share structure and a $500mm market cap results in a $2 stock price. If they're smart about the SS, the share price can reach uplist territory very quickly.
It's taking place near Minneapolis
Any Minnesotans invested in this stock?
Strong incentive to push this over the finish line
Ben did say that he believed that CLHI/TDS was holding up some of his other cases, so it's understandable that he's highly motivated to get this done. Moreover, he's aware of the financial rewards to all concerned when this deal is confirmed.
I'm curious if UK investors are aware of this vote and participating. I know there are many that invested in the private placement, but I think it's almost certain that there are UK funds in CLHI too.
I hope Ben tweets confirmation of the merger shortly after the meeting. The week of December 7th should be very interesting.
I don't believe so
Would make no sense to me. I think any remaining stragglers just haven't gotten around to returning the signed document.
Update from Synergy
To spare Mr. Berry from having to respond to multiple emails.
He told me this morning that the last time he tallied, we were at a 44% response rate (not sure when he last tallied, but presumably before turkey day). He said he's waiting on responses from a couple of big shareholders that should push us over 50%.
Looks like we're on track. Spread the word!
Would help if Synergy sent out a reminder tweet
Probably the best way, other than this board, to remind the remaining folks to send in their votes.
Given no broad proxy solicitation
Getting to 44% already is great news. It would be nice to get over 50%, which I think will happen, but the conditions for the judge should be met at this point. The judge should take into consideration that it was virtually impossible to conduct a "normal" proxy solicitation process.
I thought the record date was Nov 20th?
Did that change?
Aren't we at a quorum based on one of the other posts? I know we want to cross 50% to show a stronger signal, so EVERY vote counts.
Already submitted mine on Friday.
Not suspended
I just executed a small trade to verify. Just not a lot of activity so far.