SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Cable Car Beverage (DRNK)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: hoopsville who wrote (261)11/1/1997 6:23:00 PM
From: hoopsville  Read Replies (2) of 284
 
VOTE AGAINST THE MERGER UNTIL WE GET MORE THAN $5.00 A SHARE:
Got my proxy today for the Special Meeting November 25 to vote on the "merger" of Cable Car Beverage with Triarc. I'm voting AGAINST the "merger" hoping that if it's voted down Triarc will have to pay a fair price. On page 44 of the proxy statement it says that the DRNK price on April 25 was selected as the basis because that was the date an article appeared in Beverage Digest which discussed a potential merger of Cable Car and Triarc. This obscure journal never had any effect of Cable Car's price or volume and was never ever mentioned in the Silicon Investor thread. Indeed the price started going up 5 days after that on May 1, but that was due solely to the May 1 Press Release announcing record results (revenues up 46%, earnings up 100%). Here are the closing BID prices on: 4/25 - 2 11/32, 4/28 - 2 11/32, 4/29 - 2 10/32, 4/30 - 2 11/32, 5/1 - 2 14/32, 5/2 - 2 20/32, 5/3 - 2 27/32. Eventually the DRNK price exceeded 4. Analysis by Montgomery Securities (who Cable Car hired to evaluate "merger") on page 44, stated the fair value of Cable Car stock would be between $5.18 and $5.33 a share if based on price of the common on June 17 which was still only $3.69 a share. Cable Car stockholders are going to get Triarc stock worth roughly $3.50 a DRNK share which is NO PREMIUM AT ALL based on the June 17 price and is greatly below Cable Car's value as a high growth independent company. On the subject of growth rate, Montgomery Securities used a 10% growth rate when doing an alternate evaluation based on discounted cash flow analysis (page 45). For the past 4 years DRNK's revenues have grown 50% a year and earnings about 30% a year. Even with a 10% growth rate Montgomery concluded the imputed equity value of Cable Car could be worth as much as $5.02 a share. The proxy statement says that Cable Car hired Montgomery but in my opinion Montgomery seemed to be working for the best interests of Triarc and against Cable Car's shareholders. VOTE AGAINST THE MERGER. READ THE PROXY. THERE'S A WHOLE LOT MORE TO PROTEST. What do others think or has everyone bailed out already?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News