Sam,
How does IPO'ing FL Mobile help ADR holders? The value of assets currently is not being pegged into the stock. Today we had $418.5 M in value for FL, and possibly tomorrow or soon after they'll do the same with Sky. If these values are not being represented in our stock, even now that the 20-F has been filed, where does an IPO come into the equation to help us?
If the IPO was in Hong Kong, then ADR holders can't receive a spin-off, as we cannot hold Hong Kong listed companies (most of us can't) so where do we benefit from this?
thanks
'SamAdams' pid='51393' datel Wrote:Confirmed that the 2mln shares referenced were the A class common and not ADS. NQ's original plan was to use cash + stock last year to do these deals. Due to the MW accusations and then the delayed 20f filing the Board and convert holders would not allow the company to use cash to complete the deals, hence the higher than expected equity issuance. Important to remember though that these deals were committed to prior to the MW report and share amounts were calculated when the stock was in $10 range and not when the stock was at $3 in July. Once the Qs are filed, don't be surprised to see the company launch a significant buyback to cover some of the equity issuance that was supposed to have been done in cash anyways. At today's prices, the company could be buying back stock cheaper than where it was issued. A couple of these deals could be signifcant from a revenue and profitability point of view and ultimately neutral to accretive to EPS, but not the VLife as they are still in early stages of monetization here. Net-Net, Topeka's May report had 67 mln ADS outstanding (or 335 mln A shares) anyways and $1.66 in EPS for 2015. I estimate even with dilution from Vlife and share issuance for Yipei and Showself NQ ccould still earn north of $1.40 in 2015 and potentially more if their buyback is significant ( $100 mln+). Put whatever multiple you choose on the EPS, 10,15, 20 and the upside is still signifcant. Don't forget NQ will IPO FL mobile in Hong Kong next year and that will raise money and highlight the value inherent in the shares, not to mention Nationsky. A lot of back of the envelope stuff but that's all we have to work on. 2014 #s will be a mess with dilution, mix shift to Nationsky and one time legal costs but the company will have an EPS call in December where they can go into detail on this year's acquisitions and provide initial guidance for 2015. All IMO.