I think CBL will GAP... HARD on Monday !!!!
Man Davies
Posts (4982)
NO MATTER WHAT happens here, from this point forward, CBL will see an EPIC RUN. And, it will START with SHORT COVERING !
Returns like that are VERY HARD to come by !!!
MOST BUYOUTs take into account assets and free cash. Here we have $5.2B assets / free cash. Debt is now less than $1B. That comes out to a HARD VALUE of $4.2B.
There will be basically 220M shares, after everything. If the acquisition company takes a 20% premium, we are looking at $15.27 A SHARE; OR, a return of
7,600% !!!!!!!!
Given that, I think CBL is quite attractive as a BUYOUT option for certain companies (SIMON, AMAZON, BROOKFIELD, and MANY MORE).
Plan reads UP TO 110% of the value, post approval possible. So, effectively, they took the LID off here, and, there is NO LIMIT to how HIGH this can go. This is BY FAR the MOST GENEROUS restructuring I have EVER seen, towards common shareholders.
If this RUNS to dollars, they you will recover up to 110%, in 3 years, if you hold. For someone investing millions, quite a nice return.
So, this BITCH is GOOD to RUN!
Or, whatever the price is when the plan is APPROVED. So, if this run to $100, under the plan, they will have to pay up to $110 per share