Calamos Investments (Nasdaq: CLMS) to be Acquired by Founder

Calamost Investments, Nasdaq: CLMS

Calamos Asset Management, Inc. (NASDAQ: CLMS) announced today that it has reached an agreement in principle to be acquired by an entity formed by Mr. John Calamos and Mr. John Koudounis. Mr. Calamos is the founder of Calamos Investments LLC, the operating company of CAM, and CAM’s Chairman.

Shares of CLMS climbed on the news on heavy volume. CLMS reached a high of $8.40 before settling back to $8.32 in mid-morning trading. CLMS had closed at $7.36 on Friday.

Commenting on the proposed acquisition, Mr. Calamos said:   “As investors at Calamos, we have always taken the long view.  I believe a fully private ownership structure will enable John Koudounis to focus on managing our business to his vision for our firm’s long-term growth.”

Mr. Koudounis added:  “Upon arriving at Calamos, I directed an extensive analysis of our corporate structure. Being a fully private company—consistent with 95% of asset managers today—will allow us to manage the business with the same long-term view that we apply to our investment approach. By eliminating the distraction of the market’s increased focus on short-term metrics, we can be singularly dedicated to improving our key performance areas.”

As of September 30, 2016, CAM owned 22.2% of Calamos Investments, with the remaining 77.8% being privately owned by Calamos Partners LLC. Mr. Calamos, other Calamos family members and Mr. Koudounis, directly and indirectly own 100% of Calamos Partners.  Calamos Partners also owns all of CAM’s outstanding Class B common stock, which represents 97.4% of the combined voting power of all classes of CAM’s voting stock.

Two analysts cover Calamos Investments. One rates it a “Buy”, while the other rates it an “Underperform”. CLMS trade over $16 in 2009 before pulling back and twice have traded in the $12 handle over the past few years.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

Ticker Symbol CLMS
Last Price a/o 11:48 AM EST  $               8.32
Average Volume 95,000
Market Cap $142.5 million
Sales $200 million
Shares Outstanding 19.36 million
Share Float 19.36 million
Shortable Yes
Optionable Yes
Inside Ownership 15.30%
Short Float 2.77%
Short Interest Ratio 5.61
Quarterly Return 10.14%
YTD Return -17.40%
Year Return -12.23%

DryShips Inc (Nasdaq: DRYS) Gets Debt Re-Financed

DryShips Inc. – Nasdaq: DRYS

Greece-based DryShips Inc. announced an agreement for $200 million in refinancing through Sifnos Shareholders Inc. Shares of DRYS have, so far, reached $5.10 from yesterday’s close of $3.55 on heavy volume – a 40%+ increase. DryShips owns 13 Panamax drybulk carriers, and 6 offshore supply vessels – comprising 2 platform supply and 4 oil spill recovery vessels.

According to a press release provided by DryShips Inc.:

Under the terms of the New Revolver, Sifnos will extend a new loan of up to $200.0 million secured by all of the Company’s present and future assets except the MV Raraka which will continue to be financed by its existing commercial lender. The new loan will carry an interest rate of Libor plus 5.5%, is non-amortizing, has a tenor of 3 years, has no financial covenants and will be arranged at a cost of 2.0%. In addition, Sifnos will have the ability to participate in realized asset value increases of the collateral base in a fixed percentage of 30%.

Interestingly, yesterday DRYS slipped to a 52-week low of $3.51. Also interesting is that no analyst has issued a rating on DRYS for over two years. Current trading volumes, however, are six times the daily average and trader forums for the shares are experiencing large activity. Sales had increased from $1.08 million in 2011 to $2.19 billion in 2014 but last year the figure dropped to $0.97 billion.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock. The below data is provided without any guarantee of its accuracy.

Ticker Symbol DRYS
Last Price a/o 3:35 EST $5.08
Average Volume 4.86 million
Market Cap $4.3 million
Sales $66.1 million
Shares Outstanding 1.21 million
Share Float 0.87 million
Shortable Yes
Optionable Yes
Inside Ownership 26.40%
Short Float 33.56%
Short Interest Ratio 0.06
Quarterly Return -51.70%
YTD Return -98.61%
Year Return -97.63%

 

Allied Healthcare Services (Nasdaq: AIQ) Receives Buyout Offer

Alliance Healthcare Services receives buyout offer – Nasdaq ticker: AKAO

Shares of AIQ are up over 13% on large volumes. Allied Healthcare operates outsourced healthcare services to hospitals and providers and trades under the Nasdaq ticker AIQ. Located in Newport Beach, CA, Allied Healthcare Services operates as partner to over 1,000 hospitals in 45 states. On Friday it closed at $7.95 but Monday’s close saw AIQ reaching $9.00 on news that Tahoe Investment Group has offered to acquire all the outstanding shares for $9.60 per share.

From Allied Healthcare’s press release:

“The Board of Directors of the Company has authorized a Special Committee, comprised solely of directors not affiliated with Tahoe, to evaluate the Expression of Interest. The Special Committee has engaged independent legal counsel and intends to engage an independent financial advisor to assist in its evaluation of the Expression of Interest. In connection with the Expression of Interest, the Special Committee has agreed to waive the provision of the Governance Agreement prohibiting THAIHOT and its affiliates, including Tahoe, from proposing to acquire additional shares of the Company’s common stock. The waiver is for the limited purpose of submitting the Expression of Interest to the Special Committee.”

Allied Healthcare Services sales have dropped from $493.70 million in 2011 to $473.10 million in 2015. Three firms cover AIQ and the most recent analyst activity shows a rating downgrade to “Market Perform” or “Neutral”.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock. The below data is provided without any guarantee of its accuracy.

Ticker Symbol AIQ
Last Price a/o 4:00 EST  $                  9.00
Average Volume 20,600
Market Cap $85.94 million
Sales $500.5 million
Shares Outstanding 10.8 million
Share Float 4.9 million
Shortable Yes
Optionable No
Inside Ownership 62.50%
Short Float 0.91%
Short Interest Ratio 2.15
Quarterly Return 21.20%
YTD Return -13.40%
Year Return -8.80%