DirectCash is being acquired by Cardtronics for $19 a share, leading to a roughly 100% absolutely return (incl dividends) in about 9 months since that post. A little more than I thought they would be bought out for, and a little faster.
But while this may be end of DirectCash's story, it also happens to be the beginning of the end for another Canadian company, Maxim Power. And shareholders of Maxim may do just as well.
Enjoy.
An excerpt from SA.
Valuation
Current EV of $240m CAD - $60m debt, $180m equity.
France Sale - $70m CAD
USA Sale - $220m - $290m CAD (after $10m CAD FERC fine)
Canadian Business - $0m
Summit Coal - $0m
Alberta LLS Restitution - $40m to $50m Canadian
EV based on Sale Proceeds: C$330m to C$410m
Less Debt of C$60m
Total Equity Value: C$270m to C$350m
Per Share: C$5.00 to C$6.50
*Note: Sale prices of the US and French businesses would be somewhat in excess of book value, and so would incur some capital gains taxes, but would be mostly shielded by $15m in unrecognized capital loss DTAs. Maxim also has operating loss DTAs in excess of >$100m.
...While maintaining the optionality of the Canadian businesses being worth >$0.
$55m CAD in additional value would increase Maxim's per share liquidation value by C$1.
