OSH 1 Liquidating Corp. Preferred Series A(fka OSHSQ)

[hawkmd]

More bidders could come forward and outbid Lowes.

With the housing recovery, Orchard could be profitable again.IMO Orchard could be more valuable to Equity Firms(HFs)that could take it private, fixed it and do an IPO later(2015 or 2016).

Also I see potential for another Industry player that is looking for growth to come forward and outbid Lowe's. With this in mind I believe that we could see a fight for Orchard assets between 3-5 players. I go with Lowe's and another industry player + 1-3 Equity firms.... Let see....


Lowes offer:

205M in cash + account payables(suppliers)~45M for at least 60 stores(so we are talking about ~$3.4M per store). So we are talking about an offer around ~250M for 60 stores.

If another bidder comes forward with the same avg. value per store but for let say 80 stores and the same money for the account payables(suppliers)we have the following:

80 stores x $3.4M per store= $272M in cash+ account payables= ~317M

With an offer like that preferred shares will recover something but commons still get zero!

Im betting on the prefered shares recovery but nothing for the commons. Bought last week at avg. 10-11 cents.

We have to remember that preferred shares full value is $20M($4.16 x 4.8M O/S)