Jump to content

STCN - Steel Connect Inc


Recommended Posts

Hey everyone,

 

Just read this seeking alpha article and was interested to hear thoughts. Looks like a potential 100%+ return in the next few months if Houlian can help the company unlock the value and/or SPLP agrees to buy the company at a price attractive to current activist shareholders. Definitely a very special situation.

 

 

https://seekingalpha.com/article/4404622-steel-connect-activist-catalyst-nol-rich-small-cap-at-54-percent-fcf-yield#comments

Link to post
Share on other sites
  • 3 months later...

I have done a lot of research into this and I think it is a very possible outcome that $SPLP purchases $STCN for no under $4-$5 share, if not $6. By the financial analysis, the stock is worth $8-$10 over the next few years, but obviously, $SPLP will not be paying that much.

I am thinking of buying long-term call options on $STCN. The upside is many multiples my investment and the downside can be virtually 0% with a hedge using puts.

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...