AmBase Corporation (OTC:ABCP)
AmBase Corporation (OTC:ABCP) is another interesting situation. After 22 years the company received a settlement from the government of $180 million.
A proxy statement for its annual shareholder meeting that takes place tomorrow, June 6th, states that included in the objectives to consider and act on for the meeting is "A shareholder proposal, if properly presented at the 2013 Annual Meeting, recommending the liquidation of the Company."
A catalyst like this will raise the price for the stock, since it is trading below its cash on its books.
Will this liquidation be announced soon?
An outside investor can't say for sure, however it's possible that because they distributed a $2 dividend after the settlement was announced, they have no other intentions for the awarded cash. If they were to start up other operations of some sort, they would have kept that dividend.
While a liquidation may not be in their intentions at all, the opportunity has limited downside, and a greater upside potential.
(Side note: as a kicker they own an 14,500 sq ft office building that they keep on their books for the cost of 2.5 million, however they purchased it well over two decades ago. Office buildings near them with about that much square ft are on the market for around $7.5 million)
A proxy statement for its annual shareholder meeting that takes place tomorrow, June 6th, states that included in the objectives to consider and act on for the meeting is "A shareholder proposal, if properly presented at the 2013 Annual Meeting, recommending the liquidation of the Company."
A catalyst like this will raise the price for the stock, since it is trading below its cash on its books.
Will this liquidation be announced soon?
An outside investor can't say for sure, however it's possible that because they distributed a $2 dividend after the settlement was announced, they have no other intentions for the awarded cash. If they were to start up other operations of some sort, they would have kept that dividend.
While a liquidation may not be in their intentions at all, the opportunity has limited downside, and a greater upside potential.
(Side note: as a kicker they own an 14,500 sq ft office building that they keep on their books for the cost of 2.5 million, however they purchased it well over two decades ago. Office buildings near them with about that much square ft are on the market for around $7.5 million)
