Author Topic: CALL - MagicJack VocalTec Ltd  (Read 17650 times)

LightWhale

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Re: CALL - MagicJack VocalTec Ltd
« Reply #40 on: October 11, 2018, 08:26:01 AM »
Price is getting even cheaper, 7.72. Assuming the acquisition goes through, that's a 13% spread.


walkie518

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Re: CALL - MagicJack VocalTec Ltd
« Reply #41 on: October 11, 2018, 11:31:27 AM »
Price is getting even cheaper, 7.72. Assuming the acquisition goes through, that's a 13% spread.
Should CALL's profits or revenues decline substantively, does B Riley have the right to walk and if so is there a penalty?

LightWhale

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Re: CALL - MagicJack VocalTec Ltd
« Reply #42 on: October 15, 2018, 07:30:21 AM »
My understanding of the proxy is that A) there's no termination fee on the side of the buyer, only of the seller  And B) if FCC approval is not given by the 9/11, both parties may abandon the merger agreement without being held liable.
Will appreciate other opinions.

Either way, I'm not aware of any apparent reason for B.Riley to walk away from the merger. They consummated similar deals in the past for the sake of cash flows, and going through their earning calls, I could read nothing between the lines about changing their minds on this one. The financials of MagicJack haven't deteriorated significantly, plus B.Riley's managers will be hard-pressed to blemish their reputation by admitting a mistake and incurring sunk costs. 

Then again, by the price action I'm obviously missing out on something. What do you see as the reason for the stock price going down?
« Last Edit: October 15, 2018, 07:35:57 AM by LightWhale »

walkie518

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Re: CALL - MagicJack VocalTec Ltd
« Reply #43 on: October 15, 2018, 02:04:51 PM »
My understanding of the proxy is that A) there's no termination fee on the side of the buyer, only of the seller  And B) if FCC approval is not given by the 9/11, both parties may abandon the merger agreement without being held liable.
Will appreciate other opinions.

Either way, I'm not aware of any apparent reason for B.Riley to walk away from the merger. They consummated similar deals in the past for the sake of cash flows, and going through their earning calls, I could read nothing between the lines about changing their minds on this one. The financials of MagicJack haven't deteriorated significantly, plus B.Riley's managers will be hard-pressed to blemish their reputation by admitting a mistake and incurring sunk costs. 

Then again, by the price action I'm obviously missing out on something. What do you see as the reason for the stock price going down?

I agree with all of your points.

That said, a buyer has access to financial information that is better than what GAAP provides so I speculate that the market believes that the deal does not go through not due to antitrust, but that there has been a material decline in something that doesn't show up in the GAAP statements on a forward basis?  Maybe it's just timing?

At the same time, this might be an interesting risk arb play should B.Riley still be interested in closing...



Jurgis

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Re: CALL - MagicJack VocalTec Ltd
« Reply #44 on: October 30, 2018, 10:26:14 AM »
Sold. Thanks for idea.
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writser

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Re: CALL - MagicJack VocalTec Ltd
« Reply #45 on: October 30, 2018, 10:32:30 AM »
Sold as in: I'm sold on the idea? Or as in: I just sold my stock. If so - may I ask what reasons you had for that?
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.

Jurgis

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Re: CALL - MagicJack VocalTec Ltd
« Reply #46 on: October 30, 2018, 10:47:19 AM »
Sold the stock.

I don't see FCC approval: https://www.fcc.gov/news-events/headlines but maybe I missed it.

Price moved up.

I don't want to hold and see what happens if FCC does not approve by 11/09.

I'm probably wrong.  8)
« Last Edit: October 30, 2018, 10:58:06 AM by Jurgis »
"Before you can be rich, you must be poor." - Nef Anyo
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writser

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Re: CALL - MagicJack VocalTec Ltd
« Reply #47 on: November 06, 2018, 06:29:21 AM »
https://globenewswire.com/news-release/2018/11/05/1645505/0/en/B-Riley-Financial-Reports-Financial-Results-for-the-Third-Quarter-of-2018.html

Quote
Riley added: “We have returned a total of $0.58 cents per share in dividends to our shareholders through the first nine months of 2018, and our recent share repurchase announcement follows our previous buyback of approximately 950,000 shares earlier this year. We continue to work towards obtaining regulatory approval to complete the magicJack acquisition and remain enthusiastic about the multitude of opportunities ahead of us.”
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.

hillfronter83

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Re: CALL - MagicJack VocalTec Ltd
« Reply #48 on: November 06, 2018, 08:02:31 AM »
https://globenewswire.com/news-release/2018/11/05/1645505/0/en/B-Riley-Financial-Reports-Financial-Results-for-the-Third-Quarter-of-2018.html

Quote
Riley added: “We have returned a total of $0.58 cents per share in dividends to our shareholders through the first nine months of 2018, and our recent share repurchase announcement follows our previous buyback of approximately 950,000 shares earlier this year. We continue to work towards obtaining regulatory approval to complete the magicJack acquisition and remain enthusiastic about the multitude of opportunities ahead of us.”

Thanks for the update. I like that price drops on the news. Added a few shares.

writser

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Re: CALL - MagicJack VocalTec Ltd
« Reply #49 on: November 07, 2018, 02:53:34 AM »
Looks like your timing was impeccable. As far as I can see FCC granted approval. $8.62 bid premarket. Deal will probably close in a few days / weeks. Crazy price action the past few days. The whole deal took a lot longer than expected and I'm glad I didn't end up buying late 2017 / early 2018 when the spread was ~4% for an anticipated closing in a few months.

Easy to say in hindsight of course (though I did bump this thread), but I think that below $7.50 this was a very good buy last month - there was no indication at all that the deal would fail whatsoever and the company didn't look very expensive intrinsically either. I bought a decent position and (unfortunately) sold a few shares on the way up. Despite that it's still difficult to pull the trigger because if a simple deal like this suddenly starts trading at a ~15% discount there's always that nagging feeling that other market participants know way more than you do ..
« Last Edit: November 07, 2018, 02:55:44 AM 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.