Ok KZAP, here's one I have been following and got into at .23
WCEC is about to be acquired by VDCT - before year end.
"This is the largest video retail acquisition in the industry since the 1994 Viacom/Blockbuster merger and will
propel Video City into the position of fifth largest video specialty retailer in the country. "
"The terms of the transaction call for each West Coast shareholder to receive .33 shares of Video City common
stock (subject to adjustments under certain conditions), and .05 shares of a Series F Preferred Stock ($25 stated
value) for each share of
West Coast Entertainment common stock."
Now, .05 of a $25 stock is $1.25
.33 of a VDCT share at todays close is worth .278
So as of today, a share of WCEC that you can buy for 1/4 is worth over $1.50
What is wrong with this picture? I know the "certain conditions" are not specified, but that only pertains to the
amount of VDCT regular shares. The preferred shares are still what catch my eye.
Sounds like a decent company after the acquisition as well, although recent numbers are down, it seems like it is
worth more than .25
"The announcement was made by Robert Y. Lee, Chairman and CEO of Video City. Lee added, ''This
accretive acquisition will give Video
City critical mass at the store front level, a profitable franchising operation, and another solid internet site, all of
which strengthen our
position towards becoming a leading vertically integrated entertainment company.''
We can't tell exactly how many shares of VDCT we'll get just yet, but I believe this is an intersting situation.
Also, the only other stock I ever mentioned on this thread was EBLD when it was 1 7/8. It subsequently ran to 8. It is now back at 1 7/8. I think it is a better stock now than it was then. If they ever get their act together and release the audited financials that have been expected for months now, this could move nicely. It seems pretty safe at these levels. I have been holding a bit for a while, and am actually in at a loss (2 5/16) but I will at the very least hold this, and may add.
I am more than happy to discuss real stocks that move for real reasons.
I actually trade a bit between posts on this thread......
MG |
