RE: RE: Western is BankruptHow much will the share price be after the offering:
Very simple. Just ask yourself, how much is this whole company worth in this environment. It is losing about 20 million per quarter, so about 80 million per year. At that rate the money from the offering will be gone in about 7 months.
They have some land that they have to sell, and given the economy, they will not get much for the land. Let's say things go good and they get 50 million this year from land sales.
You are still left with a company that is losing tons of money and has no good track record.
Maybe it's worth about $50 to $75 million dollars... With 466 million shares outstanding, you get a price of about $0.10 to $0.15. Anyone buying shares above this price is getting ripped off. Brookfield doesn't care about buying at higher prices because it owns the whole company anyway, so it's like giving money to itself. Only a fool would buy now!!