share price thoughtsWM holds 10 million shares of DM, trading at $1.80, worth $18 million.
The value of these shares, per share of WM, is
$18/65 = $.277 (65 million shares outstanding)
Shares of WM are trading at $.46, which means the market is valuing WM without DM at $.46 - $.277 = $.183 per share, or giving it a market cap of $.183 x 65 million = $11.9 million. Sounds really cheap to me. Any thoughts?
(Shares of WM are trading at $.46, and considering there are now 65 million shares outstanding, and 72.4 million fully diluted, one might worry about dilution effects, but warrants and options exercisable wouldn't change share value much if exercised. Some are in the $.20 range, I believe, and some are as high as $.75. I think it's safe to say per share value (as opposed to per share market price) wouldn't decrease too much if options/warrants were exercised, as share dilution would be compensated by additional cash. So to keep the analysis simple, I am ignoring the effects of share dilution, and so I used 65 million shares in the above calculation)