However, I would deduct goodwill. Without goodwill, price / tangible book is around 1, which is not so cheap. It is also not a net-net according to Graham. Further, operating cash flow, while TTM-positive, has been inconsistent quarter to quarter. Still, I like the setup - net cash plus an active catalyst is a decent combination, even without a classic value discount.
I suppose you could also consider a scenario where the $0.30/ share offer for the business is accepted and the CIC, gross up, and transaction fees come out of that offer amount. That would leave shareholders with $0.17/share.
However, I would deduct goodwill. Without goodwill, price / tangible book is around 1, which is not so cheap. It is also not a net-net according to Graham. Further, operating cash flow, while TTM-positive, has been inconsistent quarter to quarter. Still, I like the setup - net cash plus an active catalyst is a decent combination, even without a classic value discount.
Ill leave it to the reader to set what their downside is. I frame it as a downside of -25% to the net cash balance and -4% to tangible book.
No matter how you slice it, it is well protected.
I suppose you could also consider a scenario where the $0.30/ share offer for the business is accepted and the CIC, gross up, and transaction fees come out of that offer amount. That would leave shareholders with $0.17/share.