RE:RE:So when does the takeover news come out? Pokerchamp wrote:
I wonder what a 24 cent sp company will attract. Hard to see anythig over 50 cents in the near term.
When entities detrmine how much to bid for a company, they don't look at the individual share price. They detrmine what the Market Cap (the value of the entire company) should be, then they calculate the pers-share price from that.
And the way they determine the correct Market Cap is by estimating the Company's future net profits, discounted to the present.
So, if Spectra7 has the potential to make hundreds of million over the next 10 years, they could fetch a sale price of around $500 Million or more.
$500 Million divided by the 200 Million or so shares Spectra7 might have outstanding after all is said and done is still $2.50 Per Share.