Book Value maybe above $10 per share. Based on the last financials from 2015, they had $20 million in cash and $513 in loans plus about $70 million in related party assets.
Let's say they had to sell loans at 75% of value in order to raise the $170 needed to pay off the loans.
that would indicate they sold $225 million of loans leaving them with about $290 million of loans, and no debt. The new loan book is generating over $30 million in interest income. Some of that is cash and some is PIK.
Let's assume the related party assets are worth 50 cents on the dollar, so that would be $35 million. And assume the cash is gone- spent on legal, audit etc.
Adding that up, we still have over $330 million in assets with no debt. Assuming 30 million shares outstanding gets you to a BV above $10 per share.
Even giving the remaining loan book a haircut of 25% and valuing the related party assets at zero gets you to a BV over $7.
I think those assumptions are very much worst case scenarios. It's more likely that we'll see a BV in the $12 per share range when we finally see the financials.
I just don't believe there was massive fraud in all the loans at UDFI. I think they made some aggressive decisions and were vulnerable.
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