Watching LL Flooring Holdings; Bleecker Street Research Issues Report On Co Titled "LL Flooring Holdings (LL): Live Ventures Deal Should Be Treated As Dead On Arrival"
Portfolio Pulse from Benzinga Newsdesk
Bleecker Street Research has issued a report on LL Flooring Holdings (LL) and Live Ventures (LIVE), stating that the unsolicited offer by LIVE to acquire LL should be treated as 'dead on arrival'. LIVE, with a market cap of just over $80 million, offered to acquire LL for an all-cash price of $194.4 million, a 106% premium over LL's current equity valuation. The report highlights several issues, including LIVE's ongoing legal issues with the SEC, its lack of sufficient cash or credit facilities to complete the offer, and LL's deteriorating financial situation. Bleecker Street Capital is short shares of LL Flooring.
October 17, 2023 | 4:15 pm
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NEGATIVE IMPACT
Live Ventures' stock price may be negatively impacted due to its ongoing legal issues with the SEC and its inability to finance the proposed acquisition of LL Flooring.
Live Ventures is facing legal issues with the SEC, which is seeking to ban LIVE's CEO from serving as a director of public companies. Additionally, LIVE lacks the necessary cash or credit facilities to complete the proposed all-cash acquisition of LL Flooring. These factors could negatively impact LIVE's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
LL Flooring's stock price may be negatively impacted due to the unlikely acquisition by Live Ventures and its deteriorating financial situation.
LL Flooring's financial situation is deteriorating, with negative revenue growth in 6 of the last 8 quarters and ballooning losses. The unsolicited acquisition offer from Live Ventures, which is unlikely to be accepted due to LIVE's legal issues and lack of funds, could lead to a drop in LL's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100