I am trying to get my head around the likely impact, i see EPS being about 30% less post the sale, all things being much the same, in reality there is probably some organic growth that will lessen that impact.
Being higher margin business that is retained maybe the FCF wont suffer as bigger drop, so throwing all those numbers in a bucket and stirring them up, my IV range drops to 30-50c - with the margin of safety knob turned up a bit because there are too many unknowns.
I would also like to know what their plans for the $14.4m are, hopefully first priority is payout the $5m debt, I would prefer them to put the rest to good use, but if they cant make money with it then a buyback, and if they are really no good at capital management then I guess a special divvy might be on the cards.
Still trying to decide whether to increase my position in ITD or not.
ITD Price at posting:
42.5¢ Sentiment: Hold Disclosure: Held
