help with critiquing a rollup model

robfountain

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Hi

There is company on the NASDAQOMX called TMG. Its a essentially a rollup of 20 or so marketing companies.

Each company were given 20% cash and 80% stock when they joined with a 360 day lockin period. They all debt free and profitable. The stock trades at around 5.50 a share.

I'm interested in buying stock as I understand the space and think they are good companies.

However, my question is how could the holding company mitigate the share price tanking when everyone dumps their stock in 360 days? The holding company could buy the stock themselves but what else?

thanks

Bob
 
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