RE: ID againApart from ID, DF has also been buying. When the bean counter starts buying there must be value somewhere. On the positive, if there is insider buying there likely could be initial good interest to buy Ifire. They have had it on the market for 1.5 months now so enough time to see if anyone is really interested. Or perhaps they are buying just because the stock price trades at a significant discount to even its easy to evaluate assets.
Here is what we know if WED is liquidated;
Wed owns 13.7 million shares of NCST worth $0.22 per WED share. NCST trades at $1.50 or even less than its working capital of $1.60 per share suggesting NCST's technology, plant, sales, and relationship with SN are all worth zero (not to mention their new approved drug).
WED has $23 million in cash. This will likely fall to $15 million or $0.16 per WED share by the time Ifire is unloaded.
Ifire is worth anything between $0.00 to $1.50 per WED share. Let's be pessimistic and say $0.0 since they have never delivered anything positive to shareholders.
WED sold as a shell company is worth something. WED a few years ago got $10 million for such a company and with no where near the tax losses. Let's say WED sold is worth $10 million or $0.11 per WED share.
WED is then worth about $0.50 a share even with the most pessimistic liquidation assumptions. An easy double even under these conditions.
Another thought to ponder......Is Ifire Really for Sale?
The press release say it is and as they say "everything is for sale at the right price". However, unless someone steps in and offers a good price it will likely not be sold. I also expect that ID still wants to maintain an interest in Ifire, as he believes in the technology and it is his baby (not NCST).
No-one would commit to Ifire with a non exclusive JV arrangement. This was really why no-one wanted to do a JV with them. Why form a JV so Ifire can then turn around and form a new JV with one of your competitors?
However, we do know that there are at least 5 interested parties in the technology and maybe more now since it is for sale. This puts everything into a new perspective. The entity that buys Ifire would likely then not want to do the JV thing. This would leave the other hopefuls out in the cold. It can be also speculated that ID really does not want to sell Ifire, but needs money and help to finish the technology. My guess (and it is only a guess) would see a 50% share of Ifire sold. The purchaser (most likely Sanyo and/or DNP) will then inject money into Ifire to finish the develop. It would not be the JV WED wanted, but in the end a good part of the future value of Ifire is still there for WED shareholders.
I was going to sell my shares for the tax loss, but decided to hold on as this story is far from over. It just looks bad now.