Author Topic: CAB - Cablea's  (Read 734 times)


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CAB - Cablea's
« on: May 18, 2017, 08:58:54 AM »
Long CAB
Cabela share holder will receive $61.5 cash from Bass Pro Shops and expected to close in third quarter.
Cabela's banking assets issues address by Synovus transaction.

"Under the terms of the Bank Transaction Agreements, Synovus Bank ("Synovus"), a bank subsidiary of Synovus Financial Corp., a financial services company based in Columbus, Georgia, with approximately $30 billion in assets, will acquire certain assets and assume certain liabilities of the Bank, including deposits totaling approximately $1.2 billion. Following the completion of the sale of the Bank's assets and liabilities, Synovus will sell the Bank's credit card assets and related liabilities to Capital One. Synovus will retain the Bank's deposits."

Market is discounting the deal as it will fall apart. Buyer is in the same business as seller for decades so it' very unlikely that they have found any surprise regarding to business. Regulators are like spouse and/or loved ones, they are there, by our action and their sole purpose is to protect us from ourselves and others. They are part of our life (business) and their action some time defy all logic and rational and can block the deal for any reason. I would be optimistic and look at bright side that close to 90% of deal goes thru.
Worst case scenario: Deal falls apart and you will end up with a good business in a very challenging environment at a high price.
Thatís the risk I am taking. Any thoughts?


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Re: CAB - Cablea's
« Reply #1 on: May 18, 2017, 09:01:08 AM »
I was in this when the spread was much wider, and then sold on that announcement as the spread had closed to 10% or less.  I think it's going to go through, but I just want a wider spread to be in.  Starting to be interesting again it seems.

All that being said, I wouldn't want to own CAB if the deal fails.


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Re: CAB - Cablea's
« Reply #3 on: May 24, 2017, 10:08:36 AM »
Currently at $53.4 you get $8.10 or about 15% in ~4 months. I don't really see a basis for this not going through, but the size of the spread seems to say otherwise. Even outside of Amazon, you've got Walmart and Dicks which dominate the hunting/fishing market in many places. We've even seen UA venture into apparel here. Best comparison for this being held up would I guess be Staples and Office Depot, but CAB and Bass Pro are far from a duopoly. I've tepidly bought about a very small position.