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I would hope no one would be dumb enough to short a company worth $20 million that does $13 million in revenue after if won a contract that could amount to about $30 million in revenue
Could you post a link to where you got that case docket info?
Cheers
Could You Please Provide A Link?
could you give a link for the original shareholder press release?
I just wrote did an instablog post writeup on Seeking Alpha about virtra systems.
http://seekingalpha.com/instablog/7210201-denver-smith/3389395-virtra-systems-is-in-a-very-enviable-position
There is no scenario in which shareholders could demand cash payment and force the company into bk. No scenario at all. Why would they do that when they could sell control of the company as a going concern for %1000 more than they could liquidate it for? They wouldn't
BONUSES TIED TO EBITDA EXCLUDING FUTURE ACQUISITIONS, meaning the increased ebitda coming from fresh diet will not artificially inflate bonuses.
This transaction is not dilutive. Just because something adds more shares does not make it dilutive. IVFH essentially just paid 0.5 X Fresh Diet's revenue over the past year.
Recent transactions in the sector, such as a recent investment in blue apron, a cook it yourself food delivery service are valuing these types of companies at 8 X revenues.
This is an extremely positive acquisition for IVFH shareholders.
SirFelix - Question - Can you post a link to the gun manufacturer making a buyout offer for Virtra for $0.06 in 2006? I can't seem to find that information.
Aussies claim search contracts to be worth 60 million over the next year or so…
http://online.wsj.com/article/BT-CO-20140428-701391.html
I have spoken to Mr. Turner on the phone. He essentially reiterated what you just pointed out on p 15. I am very confident that the company will be able to obtain straight debt financing with no convertibility features to pay off the small remaining cash amount of their current convertible note in excess of their cash balance at the end of the year.
A company generating this much EBITDA… The bank could have senior claims to their assets assuming they mandate the company to use the proceeds to pay off the convertible note, which the bank would more than likely do.
That being said there are all types of scenarios that could play out here in my opinion… none of them worry me very much.
The company hasn't paid off debt with cash in the past because they haven't generated cash in the past.
They are generating a significant amount of cash now.
Commercial banks base loans off of EBITDA generation, not what a company has done in the past when they weren't profitable.
I don't disagree with any of your statements at all… I concur. The reason I brought it up is because current convertible debt holders might have enough bargaining leverage in renegotiating the terms of the current convertible debt that cutting off a finger is the most effective way to increase shareholder value through being able to pay the note off in cash…
That being said I do not think that they have that much bargaining power.
I think the most likely and realistic scenario is that a commercial bank comes in and gives them a basic bridge loan just big enough to pay off the current convertible note in cash and provide some working capital.
It would be a very standard loan for a commercial bank based on the current ebitda generation levels of the group.
The last 2 sentences of this article are of particular interest to me…
http://www.cbsnews.com/news/malaysia-airlines-flight-370-vanishing-went-unnoticed-for-17-minutes/
TYPO - To correct my last post - I meant to say COLMEK not Martech. The Colmek marine engineering business is based in Salt Lake City Utah...
This could clear up any debt problems immediately…
I was browsing a business brokerage website and came across this…
http://www.mergernetwork.com/for-sale/marine-engineering-firm/354937.htm
Could this be a potential listing of Martech? If so, this would bring in ample liquidity to pay that debt off in cash...
Another big purchase of coda products…
http://www.maritimejournal.com/news101/marine-civils/hydrographic-survey/osiris-boosts-geophysical-survey-capability
If recent transaction multiples in the specialty sector are any indication of value, an acquirer would probably have to pay somewhere in the $3.75-$4.25 range to receive shareholder consent I would think…barring more future dilution than I am expecting…then again if they win a new partnership with another major broad liner all bets are off. I suppose the same could be said for them losing a partnership but considering the shared benefits of the current usf ivfh partnership that is extremely unlikely
in response to zoom22...
I am with 73114 investments I was on the call.
if you look at the composition of their operating cash flow, it actually improved much more significantly than the results would infer…
stated results show that op.cf essentially increased from 850 thousand to 1.3 million.
if you adjusted their operating cash flow for changes in working capital (which offsets itself in future periods), you actually get off in 2012 of 1 million and ocf in 2013 of 1.5 million.
Further, there were some non-recurring cash charges made in the 4th quarter. They made a $200k earn out payment to the past owner of Artisan (which isn't recurring in nature) and some costs associated with restructuring/obtaining new financing on better terms. They also had some up front costs associated with dealing with moving into a new headquarters.
After adjusting for these items … the cash flow generation ability of the company indicates that they should have more realistically done about $1.85 million in off compared to $1 million in off last year… that some serious cash generation growth for a company with an 11 million dollar market cap...
New echoscope purchase from Brazilian mining giant, VALE…
http://translate.google.com/translate?hl=en&sl=pt&tl=en&u=http%3A%2F%2Fwww.vale.com%2Fbrasil%2Fpt%2Faboutvale%2Fnews%2Fpaginas%2Ftecnologia-subaquatica-garante-mais-seguranca-na-construcao-do-novo-pier-da-vale.aspx
If the lawsuit was that serious of an issue, why would the parties suing wait until 2014 to bring the suit to court? They are alleging that the company violated an anti-dilution provision in from a share offering in 2009... 2009... why in the world would they wait until now?
My opinion, based on iroquois's past record of numerous shareholder lawsuits, is that iroquois is suing because they see the strong financial position of Coda now and are using litigation as a means to try to get the company to settle with them, which is typically the outcome in these types of suits.
However, I may be off base in my opinion since I do not have as much information as I would like to make a better informed opinion.
In most of these situations, if the case doesn't get thrown out, there will be a settlement... Iroquois won't get what they are alleging that they are owed.
Someone please indicate where they guided lower in the previous q2?
Could you point out where exactly in the q2 they guided for lower q3 and q4? I am having trouble finding it.
Sorry for the grammar. I'm writing from a phone.
Sysco bought US Foods for 2 reasons. 1. Economies of scale 2. US Foods has been faster and more effective than Sysco at investing in faster growing specialty food areas. Only good things will come from the US Foods acquisition. If Sysco did anything to impede the growth of a customer/supplier like IVFH they would be going against their entire rationale for the US Foods acquisition. Sysco didn't 18% of the total United States food distribution market share by being stupid. I would like to think that that will continue not to be stupid and only do things to enable IVFH to grow even faster. Sure there is uncertainty going forward. When is there not uncertainty?
The only thing that is certain is that IVFH obtained a non dilutive bank loan and is using the proceeds to prepay about a $700,000 note that is convertible at $1.00 per share and is extremely dilutive. That will decreases the amount of potentially dilutive securities by 700,000. This is certain.
Nothing can be reasonably inferred based off of the day to day stock price movements in any company, especially a company whose stock is as thinly traded as IVFH's.
Appreciate it. It is probably best practice to disclose to everyone that I am one of the group members listed in most recent 13g filing.
Chefs warehouse grew their top line at around 35% year over year last quarter. Only 8% of that growth was organic. Hence, they are growing through acquisitions.
Chefs warehouse is currently valued, based in part, on the expectation that they are going to grow their revenue about 33% in the upcoming quarter (from the q4 last year). Considering the 8% organic growth figure from the most recent quarter, logic says they are going to have to keep acquiring other companies in the very near future to meet these lofty revenue growth targets.
Their most recent earnings call transcript even contains direct quotations talking about increasing M&A before the year end. It just freed up some capital from a stock offering...
The call transcript is very informative and I suggest people should take a look at it.
http://seekingalpha.com/article/1796472-chefs-warehouses-ceo-discusses-q3-2013-results-earnings-call-transcript?source=yahoo
Another thing to note in this transcript is the size of potential acquisitions they are trying to make. They discuss potential acquisition characteristics multiple times throughout the transcript.
I wouldn't expect for it to be reasonable for IVFH to be valued similar to CHEF. They are different monsters in the fact that value would be unlocked in much different ways for shareholders. I think it is very reasonable however to think that IVFH should be valued at a level similar to the past acquisition multiples that CHEF has paid for companies. . . This roughly equates to IVFH being worth around $3.45 in my honest opinion.
I have a long position in IVFH.
How are people not more hesitant to get rid of shares @ $1.60?