NICK Deal Isn’t Expect to Close Soon

I took Nicholas Financial ($NICK) off this year’s Buy List after the announced deal with Prospect Capital ($PSEC). It’s no secret that I didn’t like the deal and I thought NICK sold out for a low price.

I don’t know the details but the deal should have closed by now, and it’s been dragging on. There’s always a chance a deal can fall through, and that’s a real possibility here.

Prospect said in its most-recent 10-Q that the NICK deal won’t close by June 12. The problem is compounded by the fact that NICK didn’t have a shareholder meeting last year. If you go for too long without one, the Nasdaq will kick you off the exchange. Until now, that wasn’t a big deal since NICK was expecting to be bought out by now.

After trading just below $16 per share for a few months, the stock dropped 4% yesterday. Nicholas is in trouble. Someone needs to stand up and do something fast.

big05082014

Posted by on May 8th, 2014 at 12:50 pm


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