| Non-Tech : pamc | | PAMC 45.73 | -0.7% | Oct 30 4:00 PM EDT |
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I think we have a very nice opportunity with UCI:
I believe that UCI is severely undervalued. Here is why:
The current price of a share of UCI is BELOW the value that a share of UCI represents of HealthAxis. That means that the value of the rest of UCI would have to be negative in order for the current stock price to be correct.
Here is my analysis:
Total "New" HealthAxis shares = 45,422,902
UCI percentage of total post merger (without HPS shares) = 43.60%
Shares of HealthAxis post merger(without HPS shares) that UCI will own: 45,422,902 x .4360 = 19,804,385 shares
Shares of UCI stock outstanding 46,400,000
Shares of HealthAxis owned by UCI per 1 UCI share: 19,804,385/46,400,000 = 0.43
PAMC Share price $30.125
Value of HealthAxis owned per 1 UCI share:
$30.00 x .43= $12.95
Current price of 1 UCI share = $9.8125
Implied "negative" value of balance of 1 UCI share: -$3.1375
So, even if you throw out the rest of UCI's businesses, the shares are undervalued.
You can adjust your "true value" UCI share price each day by multiplying the closing price of PAMC by .43 and adding what you think the rest of UCI is worth. Then compare that to UCI's closing price and determine if it's still in play. |
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