Posts

Showing posts from February, 2017

Walker Innovation Inc (OTCMKTS:WLKR)

I wrote this up Tuesday night and I don't recommend purchase of the shares now but I suppose it's still worth sharing.

Walker Innovation Inc is a nano cap company that trades OTC.

They just filed their 10-K and showed an increase in cash to $10.285m and an unrealized gain of $7.6m.

The increase in cash was in relation to "exercise and sale of 3.75m shares associated with its warrant to acquire shares of the Upside Commerce Group, a new business travel service founded and launched by Jay Walker".

The unrealized gain was in relation to the fair investment value of the remaining warrants in Upside. Here is an article on Upside: Priceline Founder Raises 50m for New Travel Venture

That's right, Jay Walker founded Priceline, so he is fairly competent in the travel space.

Total Liabilities equaled roughly 991k and operating income was profitable at 405k for the quarter.

Effective February 3rd, Jonathan Ellenthal has stepped down as CEO and is working full time with Ups…

Mylan to Purchase Substantially All of the Assets of ProPhase Labs Inc.

Back on January 9th it was announced that Mylan was to purchase all of the assets of ProPhase Labs plus assumed liabilities subject to shareholder approval.

Last night it was disclosed in the PRE 14A that the proceeds from the sale of the assets would be approximately $41.3 million.  This is AFTER a $2.1 million tax liability to the state and $2.2 million of transaction related costs including accounting and legal fees and expenses, and the repayment of the Secured Promissory Notes.

In addition the company is keeping it's cash and accounts receivable which combined equal $4.2m.

So we basically have $45.5m sitting in an "not quite" shell company that last traded for $31.97m.

The CEO has stated he's against a special dividend because it's not prudent from for taxes which is good thinking from a capital management perspective.

 In fact there may be a possibility of a tender offer (he went so far as to admit it's a possibility and he said he wouldn't mind at …