I agree with this post entirely, Again my only concern is many may see this as a short term buy and sell when it hits the first few resistance points. This would be a huge mistake in my opinion.
Folks this is a multi-year play with share price appreciation all along the way.
With ths financing qasp has locked up they can go anywhere they want and do and acquire most anything they want going forward.
Don't think for one minute they will not capitalize on this unique position they find themselves in.
Think about it, many good companies are in trouble due to the loose days of over funding and easy credit and now the opposite is true.
This does not mean if the current issues with these companies were resolved they would not do very well even in this environment. In fact, they can grow much faster because the competition is in such a weakened state. This translates to increased market share for qasp shareholders IMO.
We all know the aerospace industry in a weak position due to the current financing environment and there are many opportunities to acquire good solid companies at bargain basement prices.
This will likely continue into the foreseeable future. I have been assured by my sources outside the company that they are targeting companies that will be made profitable directly after acquisition.
They are not interested in companies who have any major toxic issues that can not be easily resolved as long as funding was provided and or cleaned up.
It seems there are plenty to choose from and as soon as the first acquisitions are completed and the news hits the wire I am sure many more will line up for inspection. This is cherry picking at its finest.
I sincerely hope that people do their DD on this company thoroughly as it is not just a 6 step wonder. This company has very long legs IMO.
What makes Qasp so special is a few things, they are not special in and of themselves but what makes them so special is their ability to be able to solve the issues of good solid companies who otherwise would have little or no options. This puts Qasp in a very interesting position at the negotiating table as well IMO.
Not only can they solve the short term issues a company may have but they will be able to acquire them at unbelievable prices not to mention having the working capital on hand to grow whatever they choose to buy.
This funding and any future funding will go a long way in building shareholder value in quasar for a long time.
Of course this is just my opinion based on many years of experience in finance and business.
A very easy comparison I would like to make here is one where I made a huge amount of money in the late eighties to the mid nineties and it was in the savings and loans debacle.
Look into the opportunities that were presented to folks who had available funds through the RTC (Resolution Trust Corporation).
In this case very valuable properties were being liquidated through this agency to individuals and corporations who had the means to take advantage of this situation. Timing was the key to wealth here. Cash was king.
Many Billionaires were made in a few short years. The properties were sold literally in most cases for 30-40% of their then current value.
The interesting thing was as we acquired these properties from the RTC we would go to banks and based on the cash flow of the properties and acquire normal bank financing and get our money right back out plus a huge profit and go do it again. This was like shooting ducks in a barrel.
I think we are in a very similar situation here. Qasp can acquire good companies then show them profitable in a reasonable period of time and then have them financed through more permanent financing sources thereby making available the original acquisition cash to keep acquiring good companies.
I was very keen on a statement made by the company that said the monies will be transferred in a "lump sum". This is a key statement in my opinion. This may very well hint at the possibility that the funding is in fact not tied to each acquisition as many have speculated. In addition dean said that this is a very "flexible financing vehicle" which also may support my suspicion. If this is true then the gloves are off when it comes to profit because as they acquire more companies they become more profitable and the more profitable the more companies they can buy and so on. In my mind no different than what we did with the RTC.
Let me tell you it was a beautiful thing.
I see this year and next as just the beginning of a long and profitable environment for Qasp and anything they choose to do.
Sorry for the book but I had a few things on my mind.
Have a good buying day. I know I will.
T.
All my posts are my own opinion.
