Syncora Holdings Ltd. (fka SYCRF)

[rockraider3]

NOL valuations are a crap shoot. Syncora threw how many billions in NOLs in the garbage can with the sale of their business to Star? You can't even put these NOLs on the balance sheet unless you are generating sufficient income to be able to reasonably use them over a period of time.

But if I was to assign a value off the top of my head, I guess I would start at the $300MM figure and apply a tax rate, then apply a factor for the merger dilution, then deeply discount it.

Yes, it would likely have to be a private company given the size of the NOLs and the requirements around the reverse merger. They could PIPE into a Syncora shell. Although ultimately I would expect the surviving entity to go private. A company of that that combined size likely has no business staying a publicly traded entity.

Just my opinion. EI probably has a good perspective on this, if he chimes in.

Disclosure: I'm out of Syncora, but if the value proposition improves may get back in at some point.