A este análisis falta por conocer que estaremos comprando con todo ese dinero, y que ingresos estaremos generando que nos permita tirar de NOLs...muy importante destacar que estamos pagando un 3% intereses solamente (eso está tirado).
WMIH is worth $8 if you do the numbers... From IHUB:
banman87 Monday, 12/22/14 12:26:06 PM
Post # of 410624
Going further, they take the 570 million net from the convertible issue at 3% and use it to leverage up say 4 to 1. 20% down, they acquire a near 3 billion asset and the 3% cost of capital is actually not a cash cost. They pay the 3% as a cumulative dividend, which means they can hold off cash wise in terms of paying out about 18 million in 3% dividend.
So take round numbers of 600 million and a 3 Billion real estate asset with a cap rate of say 7%, and a cost of capital of 3% but really 0 cash wise... you get 210 million of cash flow to the bottom line.
Assuming they convert the stock at even $1.90 per share on the 600 million raise your still at say 235 million shares for the stock... so getting about 90 cents of cash flow per share on this type of assumption.
You also have about 2.1 billion of 35% tax based Net operating loss value, so even if you discount that by 50% your at 1.05 Billion right?
90 cents cash flow with a multiple of 5x cash flow is $4.50 per share. Add in the $4 per share worth of NOL's net.... and we have a fair value around $8.50 per share
Also, I do not expect them to issue more equity going forward unless the return on capital is very high to do so.
