Friday, November 23, 2012

Banque Tarneaud - Special Situation

Crédit du Nord has has extended an irrevocable offer to buy the 21.5% of the shares in Banque Tarneaud that it does not already own, at a price of EUR140.  The tender window closes in just under 3 months. Stragglers representing less than 5% of equity will be squeezed out at 140. The shares in question are currently quoted at 81.

Je remercie  Actions Ordinaires Entreprises Extraordinares pour l’idée.

Update: It turns out that the shares were halted on the eve of the tender and haven't traded since. That explains the rather large gap between price and value.

Disclosure: No position

Thursday, November 22, 2012

Ballantyne Strong - Theatre Projection Systems

The improvement in the financials after 2008 reflects the attractiveness of the digital projection business. The equipment costs a lot more and there are service agreements attached. Ballantyne Strong is now almost completely out of analog.


“In July 2012, the Company was notified by the Chinese Customs Authority (the “Authority”) that they will be reviewing the Company's 2010 tax filings for outstanding Value Added Tax (VAT) due to the Authority.  The Company is currently assessing the situation and is unable to determine the impact, if any, there will be to the financial statements.  However, the Company believes it has all significant VAT taxes appropriately accrued in the financial statements at September 30, 2012.”

Few things in investing are quite as meaningless as the designation “net-net”, but, for what it’s worth, Ballantyne Strong is a moated net-net.  $8 is a fair estimation of its stock’s value.

Disclosure: No position