eQuine Holdings sees Dynegy (DYN) as an attractive Leveraged Buy Out Candidate, Notifies company of intended activism
DALLAS, April 27, 2017 /PRNewswire/ -- eQuine Holdings now sees Dynegy (DYN) as an attractive take out target that would enhance several energy providers' assets, but we believe the more likely scenario is a PE transaction.
Robert Flexon, Dynegy's CEO stated on December 28th, 2016 that the company was "absolutely not" for sale, inviting one of the biggest bear raids by illegal abusive naked short selling so far in 2017. Dynegy also had a rough 2016 posting a 1.24B loss vs. profits of $50M in the prior year's period while deploying a turnaround plan for growth through acquisition.
Dynegy now finds itself in a classic scenario whereby the underlying assets including LT/ST debt significantly (3X) & (5X) outweigh the current market cap of approximately 800M. Our proprietary data suggest that a significant portion of the Q1 selling has been orchestrated by illegal abusive naked short selling and illegal basket trades in the options markets of deep in the money calls used to side step Reg SHO buy-in requirements. The daily short volume of Phantom Shares far exceeds the total shares rotation on a monthly basis, and this has created a great opportunity for a suitor to step in and take control of the company for its assets while the company's stock sits at multi-year lows.
eQuine Holdings, CEO Brent Atwood has reached out to Dynegy's legal team as well as Mr. Flexon's office notifying them of their intent to become shareholder activists, and management continues to ignore repeated requests to open dialog.
About the Company:
eQuine Holdings, LLC is a multi-family office (MFO) located at Southlake, Texas and is responsible for managing the day to day operations of various interests in private and public companies including: Capital Services, Private Equity, Due Diligence Consulting, Shareholder Activism & Leveraged Buy Out (LBO) Consulting. eQuine has deployed over $1.25 Billion in public and private companies.
The company deploys a very complicated strategy that algorithmically detects anomalies created by illegal abusive naked short selling and illegal use of deep in the money calls used to reset Reg SHO buy-in requirements, including a multitude of other data points and trades directly against the illegal activities of abusive naked short sellers. eQuine reported record returns in 2016 of over 500%.
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SOURCE eQuine Holdings, LLC
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