Quick and Timely Idea: Positioned for a Sale
The firm announced a strategic alternatives review after previously turning down a private‑equity buyout offer. The language of the release suggests the sale process is already well‑advanced, with analysts estimating an over‑80% chance of a transaction within the next three months. If a deal closes at a premium, the upside could be at least 19%, translating to a 104% internal rate of return. The market is now watching for a potential acquisition that could significantly boost shareholder value.
30% Levered FCF Yield but Bad Balance Sheet, Bad Business?
The company, a commodity‑focused firm, projects 2026 EBITDA of $160 million, essentially flat with its 2023 $162 million level, yet its market cap does not reflect this earnings power. Management expects cash flow and announced asset sales to repair a strained balance...