For what it's worth: Assume hypothetically that the brokerage isn't acquired for whatever reason -- BCAP would trade in its current range and the only current productive asset is the convertible debt.
There is plenty of lemonade at this price, but it's up to us to find the good lemons.
Here is my short list:
- the share price can't really go lower unless there's a R/S, so the business model can be refined (same industrial sector)
- the assets are undervalued, but the potential hasn't been unlocked
- Matt has 26 years of experience in this industry (essentially the investment being made at these prices is Matt's expertise)
- the asset acquisition strategy can be replanned without harming shareholders