Anyone know the implication when PXA is de-merged (if any) on why LNK don't fully value their PXA stake on their balance sheet? Also LNK will have a lot of debt still when they de-merge PXA but the earnings impact should not be all that detrimental. Reckon the ratio be something like 1 LNK=0.118 PXA. Giving away $819mn (46%) of market cap and only 26mn (LNK's 42% share) or 17% EBIT. Would have been great buying at $2.80. Oh well. Can't believe the industry fund overlords don't/didn't stop the attempts to sell LNK on the cheap given how dependent they are on the fund administration business - what am i missing, is a major contract loss coming? What is it about LNK that the market does not like.
LNK Price at posting:
$3.41 Sentiment: Buy Disclosure: Held
