Chris Colvin returns to the podcast to discuss why he invested in Houghton Mifflin Harcourt (HMHC) and why he thinks the deal to sell HMHC to Veritas is much too cheap. You can see Breach Inlet’s letter to HMHC here
On Stockrover.com, P/FCF is a nice 12.1. That says the stock is close to fairly valued. With HMHC at $20.985, Stock Rover's "academic" fair value is $18.26. I like the precision. Analysts mean consensus price is $19. The high target price estimate is $19. The low target is $19. Same analyst? Beta is 1.34.
HMHC doesn't pay dividends.
Today, someone bought 550 HMC 4.14.22 $22.50 calls for $0.05, or $2,750. They sold 590 5.20.22 $22.50 calls for $0.10. Net credit = $0.05. Interesting arb bet.
Hey Andrew, what Do you think about a pre-merger arb in Pearson (PSON)? Same industry as HMHC and the company being officially "in play".
I can't say I've spent much time on it; sorry!
Fair enough, thanks for the reply.
The delta on the April calls is .13. On the May calls, the delta is .18.
On Stockrover.com, P/FCF is a nice 12.1. That says the stock is close to fairly valued. With HMHC at $20.985, Stock Rover's "academic" fair value is $18.26. I like the precision. Analysts mean consensus price is $19. The high target price estimate is $19. The low target is $19. Same analyst? Beta is 1.34.
HMHC doesn't pay dividends.
Today, someone bought 550 HMC 4.14.22 $22.50 calls for $0.05, or $2,750. They sold 590 5.20.22 $22.50 calls for $0.10. Net credit = $0.05. Interesting arb bet.