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 : KKRO Koo Koo Roo
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Fred Ayres who wrote (279)12/10/1997 7:55:00 PM
From: Fred Ayres  Read Replies (2) of 479
 
KKROs decline today dropped the stock to a new 4 year low. Is there more downside? According to Yahoo Financial the book value for KKRO is $2.85. Presumably we are seeing end-of-year selling for tax purposes. The stock has seen a steady decline from the high of near $10 two years ago.

Consider the divestment of Color Me Mine. I'll take a simplistic view. My recent visit to a CMM left me impressed. I learned that in Japan alone, 75 franchises will be open. Numerous locations will open in Europe as well.

What is a reasonable sale price for the whole pot of goods? $5M? $10M? $15M?

I'll toy with $10M. There are 19.54 million shares outstanding (Q3). For a $10M buyout that comes out to $0.51/share. Lets assume KKRO recovers a bit to $3 by next year. The dividend yield for the year would be 17% on shares purchased at $3. Perhaps too simplistic. Lets say after the sale of CMM KKRO only issues one-half of the sale price as a dividend. With $5M and the 19.54 million shares that comes out to $0.26/share or 8.7% in terms of a dividend yield.

With KKRO at or near book value it would appear that the stock may see some upside given the potential for a modestly high dividend yield next year.

Consider a buyout of even $5M with $1M going out to shareholders as a dividend. That comes to $0.05/share or about 1.7% based on a purchase of stock at $3. Based on todays price the yield would be 1.9%.

Someone comment on my analysis. KKRO needs a closer look at these levels.
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