tag:blogger.com,1999:blog-2080506270244832638.post3168622499329390850..comments2024-03-28T07:17:13.573-05:00Comments on Clark Street Value: Crossroads Capital: Busted BDC, Bulldog Pushes Toward LiquidationMDChttp://www.blogger.com/profile/10679835609782815537noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-2080506270244832638.post-32252316671555772322016-08-17T15:20:13.421-05:002016-08-17T15:20:13.421-05:00SPE is quite overrated and this deal was fortunate...SPE is quite overrated and this deal was fortunately a tiny one for them.<br /><br />The author got a good price. If you buy today you are likely to get back $2.60-$2.90, IRR of maybe 5-10%, nothing to see here.johnheider1https://www.blogger.com/profile/17168829213279094039noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-5817243000482417172016-08-12T19:56:27.537-05:002016-08-12T19:56:27.537-05:00yeah i didnt realize earnings were today. thats fr...yeah i didnt realize earnings were today. thats frusturating. haha.<br /><br />i wish theyd do a call or something. idk. i guess they couldve messed up entering at $4.50 - just difficult to think that they didnt have a better grasp on the assets they were buying before they came in. <br /><br />also, the writedowns are very much mechanical - revenue multiples for comps, p/e multiples for comps, etc. but what's their comp universe? If it's just some public index that's getting swatted currently, but their businesses are good, then they might have to write them down? just based on the methodology thye use? i really dont know. like i said, wish i could find more infoAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-81339925123029183652016-08-12T08:29:42.640-05:002016-08-12T08:29:42.640-05:00Q2 NAV out today, down $1 from 3/31 to $3.23/share...Q2 NAV out today, down $1 from 3/31 to $3.23/share. Ugly.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-7523766517972076672016-08-11T10:15:02.241-05:002016-08-11T10:15:02.241-05:00That would be a nice surprise. I took it the oppo...That would be a nice surprise. I took it the opposite, willing to move them quickly for a reasonable discount, do whatever to increase the overall IRR. Which companies are you ascribing the most value to above their mark? Or which are the most legit?MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-60777185287952990272016-08-11T09:54:37.827-05:002016-08-11T09:54:37.827-05:00When they say their exit prices could differ subst...When they say their exit prices could differ substantially from book value, they mean to the upside. most of their companies are really legit. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-53757763126691664392016-04-08T08:24:02.022-05:002016-04-08T08:24:02.022-05:00Good comment and color on the marks. What I found...Good comment and color on the marks. What I found most interesting from the 10-K was the table in the footnotes (F-37) showing the NAV per share at various discounts applied to where they might sell the investment portfolio. To me that signals a willingness to move this fairly quickly to a financial buyer and not wait for each investment to have a liquidity event under the previously discussed 3 to 5 year timeline. Thanks for the comment.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-53477307567789417642016-04-08T00:23:51.002-05:002016-04-08T00:23:51.002-05:00Silkroad and Centrify appear to be strong/growing ...Silkroad and Centrify appear to be strong/growing companies with real value and have reputable investor bases. The valuation model assumptions laid out in the 10K appear extremely conservative with 25%-30% discounts, plus liquidity discounts of 9%+. I would venture to guess any sale below these book values would turn out to be a hell of a deal for someone. trading volume may limit the impact of the repurchase program, but it would be a great use of cash. I conservatively view the cash in excess of the allotment to potential buybacks as 50% "floor" and 50% future burn rate prior to sale. Looks like ~$1mm/yr burn with some interest revenue offset. Hopefully they can monitize quickly...nice find! -JAAnonymoushttps://www.blogger.com/profile/08837957136648216514noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-28528837453962551872016-03-29T16:47:08.777-05:002016-03-29T16:47:08.777-05:0010-K came out today, they've slightly adjusted...10-K came out today, they've slightly adjusted the investment strategy to:<br /><br /> <br />"On January 20, 2016, our Board of Directors changed our investment objective to preserve capital and maximize stockholder value by pursuing the sale of our portfolio investments, limiting expenses and deploying surplus cash as appropriate, including into yielding investments to offset, in part, operating expenses. Subsequent to this change in our investment objective and in recognition that the monetization of our current holdings under our prior policies and investment objective could take three to five years or more and the amounts realized may be less than current fair values, our Board of Directors on March 25, 2016 resolved to monetize our portfolio holdings at the earliest practicable date.<br /> <br />This resolution, together with adverse developments in financial markets to date in 2016, makes our investment portfolio susceptible to the risk that near-term sales could result in amounts realized being less than the fair values determined as of December 31, 2015, as we actively seek to sell our investments, either individually or in groups, it is possible that we will experience substantial differences in the exit prices ultimately achieved on our portfolio holdings as compared to the respective fair values as of December 31, 2015."<br /><br />NAV is down to $5.06, but the timeline to liquidate is moved up, net net a positive development.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-88922321051129948292016-02-03T07:39:33.250-06:002016-02-03T07:39:33.250-06:00If they go down the liquidation route, yes, I woul...If they go down the liquidation route, yes, I would imagine the distributions would be a return of capital. The portfolio investments as a whole are below cost, a couple are marked above, but my guess would be a return of capital. Bulldog's cost basis is a lot higher than current market price, so if they did sell the company outright maybe they'd be less tax sensitive than those buying after the wash out. Thanks for the reading.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-19004524638865084792016-02-03T03:09:52.621-06:002016-02-03T03:09:52.621-06:00This looks interesting. Do you know how the divide...This looks interesting. Do you know how the dividends would be taxed? Best would be as a return of capital.Martinhttps://www.blogger.com/profile/08749838473979475080noreply@blogger.com