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[value1008]

DTEA - of all the fascinating comments pro and con about DTEA over at the S.Alpha comment threads on different articles, this was one of the most illuminating, imo, from a shareholder, back when the stock was still trading around $3 before the Oct. stockmarket correction:
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https://seekingalpha.com/article/4209712-davids-tea-latest-victim-current-cannabis-frenzy

COMMENTS
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Scarborough Eddie
The company isn't trading for much more than cash + working capital. And even if the business continued to deteriorate, the brand is worth quite a bit more to an acquirer than it is currently trading for. Unilver for instance paid 4x revenues for Tazo Tea, which would put DavidsTea at $25. So even assuming the worst case scenario, cash plus working capital plus the value to acquirer equals margin of safety *at these levels.* The other issue is whether DT would do a deal. Management is obviously desperate to keep the price down, that's why it continues to furiously issue press releases knocking down the price. But the company is obligated to listen to offers. An acquirer could pay less than revenues and still pay $9/share. The acquirer could sell off the US operations to Unilever or JAB or a franchiser, something that Segal has speculated about in the past. So a deal is doable. It's also clear Segal doesn't want a deal. But it's not entirely up to him. There is a board and he is not in control of the board. Board members could decide to do a deal. Segal may also want to take the company private. The only reason the company is not private right now is that Segal doesnt have the cash. But with a deal he would have the cash to take the company private. Also consider the low valuation plus tiny float. It would not take much to get this stock to 1x revenues. Remember that this company earned EBITDA of $12mm last year and is highly coveted by tea companies like Unilever.
04 Oct 2018,