Trenwick Group, Ltd.(fka TWKGQ)

[Dondoodit]

Read the article in Saturday's Wall Street Journal on Liberty Media's investment in Sirius and its attempt to capture the NOLs. The article lays out some of the limitations on utilization.

I made an error (imagine that! And imagine that I or anyone else on this board would admit to it!) in my earlier post on this subject, in hypothesizing a fair market value for the target. In truth, the fair market value is the market cap of the company. At the moment, 36 million shares at $0.009 would equate to $324,000. Now, using the Fed's data for tax-exempt yields over the last three months, the NOLs that would be available to a buyer would be 6% of this, or $19,440.

It gets worse. The NOL utilization is stretched out, possibly 15 years or more. So the value of the NOLs is something like the present value of $19,440 earned over 15+ years, discounted at a rate equivalent to the firm's cost of capital. In other words, "Peanuts."