Replies to post #251 on ALJ Regional Holdings Inc. (fka ALJJ)

[spec machine]

No doubt that's the reason for the expedite clause in the sale agreement for Phoenix

Ravich could sell the remaining verticals in the call-center biz for ten bucks and this would still be a steal at $3-4

Can't wait to see what ALJJ gets into next

printing was boring

flooring was boring

Both the printing and the call center flips made big money

Keep your eye on Ravich and what he does, it's the jockey, not the horse on this one

He bought a bunch of ALJJ with his own cash at much higher prices

long cycle time though, years ...

like planting acorns and selling the lumber

spec

[Phaedrus77]

So this thing should have ~$4 cash per share after everything closes, plus the remaining portion of Fanueil and the corporate overhead costs?

Seems like a steal at $2. I've been buying, but it makes me wonder if I'm missing something.

[Enterprising Investor]

[From the Department of Corrections]

At September 30, 2021, the Company has NOL carryforwards for federal income tax purposes of approximately $135.1 million that begin expiring in 2022. In addition, the use of this NOL in future years may be restricted under Section 382 of the IRC if there is a change of ownership.

ALJJ's fiscal year ends in September.

CFO Brian Hartman made the following comments on the Q4 earnings call.

As of September 30, 2021 we had approximately $135.1 million of net operating loss carry forwards available. As of June 30, 2022, approximately $109.1 million or 80% of these net operating loss carry forwards are set to expire. We anticipate a material gain on sale from Faneuil's transaction and that we will use a significant portion of our existing net operating loss carryforwards to offset federal taxes. We estimate that cash state taxes will approximate $4 million to $7 million for this transaction. Net proceeds after debt repayments, state cash taxes paid and transaction related expenses will be used to fund working capital and ongoing business operations.