NOLs are worth less thanks to the corporate tax rate being reduced to 21 percent.
The $300 million is worth about $63 million, in theory, of tax savings.
Change of control really messes things up when it comes to utilizing NOLs.
The best thing could happen is if current shareholders are the ones doing the acquisition or putting the shell to a better use once most of the assets have been liquidated. No change in control, just direction.
I’m a proponent of having shells invest in real estate. See TPHS. It was formerly Syms Corp, an off-price retail clothing store chain. The site of its old Manhattan store is being replaced with a high-rise condo with a school at the base. The chart does not look pretty. Once revenue starts ramping up, higher prices will follow.
Syncora still has some real estate to work with. JVs can be formed to fund redevelopment.
I reinvested all of my proceeds into additional shares yesterday. I plan to continuing to do so. If someone or a group comes along, I get to participate. If not, I get my investment back over time.
Please do not consider this a recommendation. I spend a great deal of time on these types of investments. I’m not always successful in producing alpha. Timespans can be in years. Sometimes, shares are delisted.
"Someone said it takes 30 years to be an instant success" - Gabriel Barbier-Mueller, CEO of Harwood International
