Style, you
either have it or you
don't. And if you have it, you have it
all the time.The Rogue to the Rescue
by Tux Toledo
Page
4
"So
what does this really mean?" I asked.
"It means we, I mean Caroline, could lose the business."
"Really?"
"Yes, really. Winston, Avalon Industries is a good
business. It's profitable, returns a good dividend to the
shareholders, and is solid as a rock. I made it that
way. We have no debt to speak of. We've been
conservative but by God we're still here today whereas many of our
competitors aren't. Now along comes this scavenger Halzbee.
He's planning to borrow against Avalon Industries' assets to buy the
company. It's disgusting."
"Let me get this straight. He's going to borrow money to buy
Caroline's company, using the assets of her company as collateral for
the loan?"
"Yes. You can be sure he's got some fancy investment banker
who will issue junk bonds to finance the takeover."
"Does that make sense?"
"Don't beat around the bush, Winston. You're asking if Avalon
Industries is worth it. Well, here's the deal. If
you sold all of the assets that make up Avalon Industries you could
probably get around $180 million. With approximately two
million shares of Avalon Industries stock outstanding, that works out
to $90 a share."
"What is today's stock price?"
"Fifty-five."
© 2008 David Biagini