Mega Brands Inc MBLKF

What the H***

[NewNanaimo]

Can anyone explain why this company has flatlined.  Historically the sharevalue has always taken a modest increase in the first quarter.  This year it's flat.  Do the big boys on the inside know something their not sharing.  Typically the company is staying quiet, and it would appear they have no interest in seeing the share value increase.  Sniff, sniff....is there a takeover in the works?

[gavitron]

I asked the same question months ago. And no one knows. I'm putting in my sell order and moving on.

[FFHwatcher1]

Mega Brands sells toys to stores. They sell stuff for $1., spend 60 cents making it and about 25-30 cents administering the company and marketing the products, leaving 10-15 cents per dollar of sales for shareholders.  That's approx. the target. If they can get back to that level, the company will be worth a lot more than what it is trading at now. What more do you want?   Just read

[Nununzac]

The main thing pulling down the down the stock I believe are the warrants. There are actually 243 844 000 warrants exercible at a price of 0.50$. Since the reverse split, these warrants are exercible at 20 warrants for a new share, leaving a potential 12 192 200 new shares if the warrants are exercised. Their break up value is 10$. If the warrants are exercised, this will nearly double up the

[nerzaa]

big hole in your calculation. where is the cash from the warrant conversion? if you are going to account for diluted shares from warrant converstion, then you need also add in the cash from the converstion as well. the added cash can be used for many purposes, debt reduction, addtional capex, equity buyback... and the most likely would be debt reduction. assuming the total outstanding

[Nununzac]

You are totally right, I did not account for the extra cash from warrant conversion. I totally missed that part. I guess that is what happens when you tend to think short term too much lol. Thanks for correcting me. But that is assuming everybody converts their warrants into shares isn't it? What if not? I always tend to think for the worst case scenario. Also, I don't see why MB

[nerzaa]

no problem. we are here to share thoughts, that's why we come here. if no one converts, then there is no dilution of shares, calculate eps without the dilution effect. if only a part converts, then account for the partial dilution effect. regardless of our perception of what children at that age would be like, the fact is halo mega bloks is hugely sucessful, and

[FFHwatcher1]

If the share price is over $10 between now and 2015, warrants become convertible to common.  All proceeds that MB receives from warrants have to be used to redeem convertibles. See below, it is a cut and paste from prospectus.     Trust Account Funds received by the Corporation from the exercise of any Warrants will be deposited in a bankruptcy remote trust account

[nerzaa]

great attention to detail. thanks for sharing.

[llennn]

I would give a PPS of $18 to $20 and if its sold $25, but on the other side it could go to below $6. Beta really sux so it could ride $7 and $8 until after 2015