There a number of these firms and I have a question...
Take $TOPS for example.
The market cap is $26.14 million.
Total debt is $109 million.
The stock is trading at $1.54, but the book value is $11.89, making it worth $200,000,000+ if liquidated.
What's stopping someone (with enough coins obviously) from buying the entire company, AKA taking it private, liquidating all 14 of their ships and any other assets, withdrawing the cash on hand, paying off the debt and taking home at least $50 million profit? (200 million assets minus 100 million debt and ~30 million takeover costs, as well as a ~20 million budget for general costs of liquidation, legal fees etc...)
This is the type of balance sheet of all those greek shipping companies as well as smaller airlines, trucking companies, certain REITs and a variety of mining companies.
Submitted April 25, 2018 at 11:41PM by missedthecue https://ift.tt/2I2Cfmo
