Whoa baby! Let's look at what is really going on. As of a month ago, BORL had 84 MM in cash, 16MM in A/R, 8MM in "other" (?), and 1MM in inventory. That's 109 MM in short term assets. Everything has been trending lower, so for the sake of argument, by the time any deal gets done, let's say we're at 95 MM, especially given that "other". There are liabilities of 77MM. Realistically, I bet they are higher. But, to be nice, let's say they are flat.
So current assets minus liabilities works out to $.65 per share.
The big item is the $110 MM worth of property, equipment, etc. Equipment is probably computers, furniture, networks, packaging equipment, etc. You couldn't clear 40 cents on the dollar for that stuff if you sold it, but I don't know how much they have. Let's say you could generously clear $10 MM in an auction. That's $.32 per share.
What's left is that corporate campus. Have you ever been there? It's nice, but in the middle of nowhere! Completely out of the silicon valley loop. It would be unbelievably hard to sell. THere would be transaction costs. Until it sold, someone would be paying down the mortgage, covering taxes, etc. My guess is that it would net in the range of $50 MM. Call it $1.5/share, which I think is generous, and it wouldn't happen for awhile. So, best case, I see a real book value of under $2.50, and that's assuming no hidden problems, smoldering lawsuits, etc.
Other than cash and A/R, book value isn't really what you get if you liquidated everything. |
