It does seem the offer is 'unders'. If you look at my projections, Zenith will be earnings per share over 10 cents, and even 13 cents in two or three years. So who sells shares at $1 when they are returning 12 cents a share franked. You can see why PEP wants to buy this cheap, now.
Also, note the Rollover holders get up to 66% of they payout in the new entity AND they get forgiven the $1 mill debt they owe Zenith. So I wonder how independent Hamish and Doug's direction is. They eat their cake and have it, too. That is they get cashed out, debts forgiven, and ownership in the new company and management of the new company. And employees will get some golden handshake to stay on.
So it seems the ordinary holder are last in the queue.
If you want to have some fun, my wife I share every Zenith tidbit with for over two years. She told me the bottom would be 48 cents. She called that when it was mid 50s. Now recently she told me, based on my info to her, the share is worth $1.21 right now. I think she is about right!
And I planned to receive franked dividends of 6 cents a share very soon. Starting in a couple years. And I would retire on that.
In any case, I am glad someone values our Company over $1. They are only 20% under what they should be valuing right now. And I did tell you that I have broker reports that show this should be worth $2 a share if they just use cash flow to grow slowly. That is, if you value Zenith on the same metrics that PEA was sold for it should be worth $2 quick smart (in 3 or 4 years).
Huh, my long term play is suddenly very short term. Such is life.
Add to My Watchlist
What is My Watchlist?