Friday, March 6, 2009

Update on ARC's stock price (as of market close Mar 5, 2009)

Well, this post is a “brief” follow-up to two previous posts about ARC’s stock price.

Yesterday afternoon, ARC’s stock price closed at $3.16 per share.

I think the only appropriate acronym for that is OMG!

As I pointed out in an earlier post, ARC, in 2007, acquired 19 businesses for $146.3 million.

At $3.16 per share, that price-per-share computes ARC’s “market cap” (total market value) to be around $145 million.

And, at that price-per-share, one can now by ARC – all of ARC – for less than ARC paid for just its 2007 acquisitions.

A market cap of around $145 million now values ARC at around:

- - - 20.6% of ARC’s 2008 Sales
- - - 1.08 x ARC’s 2008 EBITDA.
- - - 49% below ARC’s y/e 2008 Book Value

I am even more stunned now than I was in my previous post!

And, ARC’s declining stock price provokes certain questions:

1. How much lower could ARC’s stock possibly get?
2. At what price would ARC’s founders consider taking ARC private?

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