Author Topic: ASFI - Asta Funding  (Read 20437 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 »
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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.

writser

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Re: ASFI - Asta Funding
« Reply #44 on: July 03, 2019, 11:40:45 AM »
A small update. Proxy is out: link.

Interesting to note that according to the proxy 6,605,915 shares are outstanding as opposed to 6,685,415 in the latest quarterly. I guess they bought back ~80k shares with their repurchase plan so far or 1.2% of shares outstanding? Not bad for a few weeks, especially given the low liquidity. Looks like they bought close to 20% of all volume.

Insider compensation is actually down y/y, nice to see. You'd actually expect very bad news in a July,3 evening filing but so far I don't see anything :P . Still cheap, still a questionable company.

The board:
Quote
Mr. Bishop previously served as a director of SFX Entertainment, Inc., a media and entertainment company, from December 2015 to December 2016. [..] As a result of these and other professional experiences, Mr. Bishop possesses particular knowledge and experience in budget preparation, control and analysis, which strengthens the Board of Directors’ collective qualifications, skills and experience.
narrator: SFX Entertainment filed for chapter 11 in February 2016.

The CFO:
Quote
Bruce R. Foster, CPA, age 59, has served as Executive Vice President and Chief Financial Officer of the Company since March 2016. Prior to joining the Company, Mr. Foster served as Chief Financial Officer from December 2005 to February 2016 of 4Licensing Corporation, formerly known as 4Kids Entertainment
narrator: 4Kids Entertainment, Inc. filed a voluntarily petition for bankruptcy in April 2011 and, after emerging from bankruptcy in December 2012, filed a subsequent voluntary petition in September 2016.
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writser

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Re: ASFI - Asta Funding
« Reply #45 on: August 13, 2019, 02:29:06 PM »
10Q is out. Still super cheap. ~$9.20 / share in cash, bonds and equities. $0.35 / share in earnings this quarter. Book value $13.50. And company has been buying back shares:

Quote
Through August 12, 2019, the Company purchased approximately 116,600 shares at an aggregate cost of approximately $0.8 million under the Shares Repurchase Plan.

Pretty close to 20% of all traded volume (is that the maximum allowed or just a coincidence?). Not bad. Initial plan seems to end August 17 (duration of three months), seems likely they will extend it.

Shares now at $7.68.
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 #46 on: August 15, 2019, 02:01:39 PM »
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.

TBW I should have listened to you. I may have been overly skeptical of a management team that has been doing all the right things lately.

writser

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Re: ASFI - Asta Funding
« Reply #47 on: August 21, 2019, 06:56:12 AM »
I'm glad I held on to most of my shares a little longer. I'm not a technical trader but at this point it looks like most disgusted minority holders have already sold their position and the buyback program seems to put a floor under the price. The madman in me wants to buy a shitload of shares aggressively at this point, drive up the price ~20% and then sell the acquired shares into the buyback program. That might actually work but I don't have the balls for it.

And on the other hand, I'm not even 100% sure the buyback program is still running (initial term was for four months, May 17 until August, 17). Also I'm supposedly a value investor, not a chart reader and this is getting closer and closer to fair value so who am I kidding - I'm not gonna buy more.

Just throwing this out there hoping that somebody else will try it :) .
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 #48 on: August 21, 2019, 07:07:04 AM »
I'm glad I held on to most of my shares a little longer. I'm not a technical trader but at this point it looks like most disgusted minority holders have already sold their position and the buyback program seems to put a floor under the price. The madman in me wants to buy a shitload of shares aggressively at this point, drive up the price ~20% and then sell the acquired shares into the buyback program. That might actually work but I don't have the balls for it.

And on the other hand, I'm not even 100% sure the buyback program is still running (initial term was for four months, May 17 until August, 17). Also I'm supposedly a value investor, not a chart reader and this is getting closer and closer to fair value so who am I kidding - I'm not gonna buy more.

Just throwing this out there hoping that somebody else will try it :) .

Worth noting that the General Counsel/Corporate Secretary just filed that he sold off all his shares. He only owned 2200 to begin with, but now he owns 0.

writser

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Re: ASFI - Asta Funding
« Reply #49 on: November 01, 2019, 01:39:39 PM »
The end game: https://www.sec.gov/Archives/edgar/data/1001258/000143774919021292/ex_162356.htm

Quote
Dear Members of the Board:
 
I am pleased to submit this non-binding proposal (the “Proposal”) to acquire all of the outstanding shares of the common stock of Asta Funding, Inc. (the “Company”) at a cash purchase price of $10.75 per share, representing a premium of approximately 60% over the closing price of the Company’s common stock on October 29, 2019, and approximately 60% over the average closing price of the Company’s common stock for the past 30 trading days. Given the premium to the market price, I believe that this Proposal presents a highly attractive opportunity for the public shareholders of the Company.
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.