Author Topic: ASFI - Asta Funding  (Read 15478 times)

Foreign Tuffett

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Re: ASFI - Asta Funding
« Reply #40 on: May 21, 2019, 06:33:27 AM »
Has there been any info on who the 10b plan is for?

I thought this was good news, but didn't really consider the 10b part.

In my mind this is very rational move by management.  If I owned as much of the company as they do I would repurchase as many shares as I could, below the cash value, and then when I do dividend myself the cash I get a much greater proportion of it.

I think the tax cuts have greatly aligned shareholders and management here, this move may be a sign of that.  By that I mean it is much better to receive cash from the company as dividends rather than in income.

That's a really interesting point.


writser

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Re: ASFI - Asta Funding
« Reply #41 on: May 22, 2019, 01:28:59 PM »
Buying and holding this was the easy part. When to sell though? I trimmed my position slighly after the recent 50% bounce.
« Last Edit: May 22, 2019, 01:31:12 PM by writser »
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

Foreign Tuffett

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Re: ASFI - Asta Funding
« Reply #42 on: May 23, 2019, 10:01:40 AM »
Buying and holding this was the easy part. When to sell though? I trimmed my position slighly after the recent 50% bounce.

Yeah, @ > $7 a share I think it's approaching fair value.

Thanks for reviving this thread last September. It's certainly a situation that has worked out well.

TBW

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Re: ASFI - Asta Funding
« Reply #43 on: May 24, 2019, 06:14:17 AM »
That sounds a bit low to me.  Using a share count that assumes all options vest:
cash+securities: $6.76 per share
Receiveables: $0.79
Tangible: per share: $7.55

They also have operating assets of $1.25 per share, and those have been producing decent cashflow and are very conservatively marked.

If you don't think management is aligned, then yes probably fair value. 

I think there is alignment so I am willing to let it run to closer to $9 per share.  At a minimum management would want shares to be comfortably over the $7.97 strike price most of their shares vest at.