David, first of all the spinoff date will be announced after the IRS approval letter is recieved. It is my understanding that all steps have been complied with for IRS to approve the action, and it is now a formaility waiting for the letter. When it is received, TRDX will have a press release for the X-date.
Currently, TRDX consists of TACT plus Cash Base, Ultimate and the Ribbon business. TRDX minus TACT is worth about $5 IMO. When the spinoff occurs, TRDX should trade down to $3-$5 depending on the market. Once the spinoff to TRDX shareholders is made each shareholder of 1 share of TRDX will get 1 share of TACT. Cash Base will be sold and the rest of TRDX will be profitable. After the spinoff, the liquidity in TACT should drive the Co higher. I value the whole issue at $22, based on 98 estimate of 1.10 for TACT, $2 for cash base and a small profit for the rest of TRDX. I don't know where you came up with the S/out on TRDX, don't forget to set aside shares for existing options.
Yes, I think that TRDX is vastly undervalued at $16. It is my top pick for 97. |
