Mar. 14 at 3:55 PM
$ARQ Pleased to see a new 13G filing from Daniel Kaufman Ventures fund. The question might be whether he stops at 5 percent, but it does signal that I and others may be correct about the floor value being
$2.25 to
$3. I used conservative multiples on the PAC business for my floor determination. However, I should have added at least another 50 cents to
$1 per share for liquidation value of the troubled GAC assets which will be more valuable if fixed. Harris Group is the defendant and is a mid size civil engineering outfit. Settlement discussion is ongoing which I believe is why the earnings call sounded more like a civil complaint. The Harris Group experts will have a different perspective on fault and what needs to be fixed. E&O insurer will be on hook up to policy limits which I do not know. They will surely want to settle but an engineering firm that size can’t afford to bet the firm or the damage to its reputation. Arq will need money. More than meets eye here going on.
