Wednesday, July 16, 2008
LEH Follow UP
If they survive (which I think there is a 80% chance of that happening) I think the stock is worth $36 (or 1x Cash) in 18 months or $24 PV today. There was an article in today's post about an LBO and I have betted the price would be the same as the deal price; I think Bain and Blackrock would fund a deal at $27 as they own 20% of the company and insiders own 30%. If they dilute the insiders by 10% then that would end any capital concerns permanently.
About Me
- Rich Tullo
- Richard Tullo is a securities analyst and trader with more than 20 years of experience. During the late 1990s he brought more than 40 technology companies public as a NASDAQ market maker for Hambrecht & Quist and Cowen and Co. From 2001-2004, Rich Tullo was an investment analyst for Providence Capital an activist hedge fund in New York. More recently, Rich was an analyst with Sidoti and Company a noted independent research firm and published investment reports on the Media and Telecom industry. Rich Tullo has also published numerous editorials, reports and industry white papers on infrastructure investing and exotic investment instruments