ALJJ - selling Phoenix Color for $135M
- selling 2/3 of Faneuil for $140M
ALJJ @ $2.20 in AH trading = market cap of about $95M with 42.2M OS
NOTE- ALJJ has struggled to make any profit recently due mostly to the highly leveraged position and the cost of their debt
CEO Jess Ravich has an excellent track record of purchasing undervalued or cash-starved businesses and revving them up for a resale, "flipping" for large profits (and being a successful fund manager)
Long timers will remember the KES (Kentucky Electric Steel) flip for a 4-5 bagger tender offer
I sold out half and retained half in ALJJ which became a holding company with no operations for a short while, then the sequence of acquisitions Faneuil, Phoenix Color, and Carpets and more
Carpets and More was a dud
Faneuil sale is a windfall and put the stock way undervalued at $2
Phoenix Color sale is gravy on top
$275M in sale windfall, NOL's to reduce a big portion of the tax liability (anxious to hear mgmt narrative on that)
Should be a lively day
$270M on closing, pays off entire $100M of debt, $170M before tax remains or about $4/share pre-tax
spec
- Foglifter -
