Topic: How To Invest

Hi Pat: My question is regarding Easterly Acquisition Corp. Do you see it as a buy? Many thanks.

Article Excerpt

A: Easterly Acquisition Corp., $9.91, symbol EACQ on Nasdaq (Shares outstanding: 25.0 million; Market cap: $247.8 million; www.easterlyacquisition.com), is essentially a publicly traded private equity fund; its holdings are largely limited to $200 million in capital. The company examined over 100 companies to invest in before it settled on Sungevity. This private firm, based in Oakland, California, is one of the biggest solar installers in the U.S. It’s sold about 9,000 residential systems in the past year at $19,000 each. That accounts for most of its roughly $200 million in revenue over that time. Easterly’s investment will see the two operations merge. The combined company will be renamed Sungevity Holdings (and trade under the symbol SGVT on Nasdaq). Easterly shareholders will hold 41% equity in the company. Sungevity has only a few assets such as a fleet of installation trucks. Instead it uses outside suppliers and contractors to install…