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Mega Brands Inc MBLKF



GREY:MBLKF - Post by User

Comment by nerzaaon Feb 21, 2012 1:39pm
256 Views
Post# 19562120

RE: RE: RE: RE: What the H***

RE: RE: RE: RE: What the H***

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 debt of 105M would be paid down with the warrant conversion; 244 * 0.5 = 122M, with 17M extra cash in hand.

a simple calculation based on ur assumptions of 12M net earning (ignoring tax effect):

12 + 19 - 20*0.1 = 29M;

19M being the estimated interest expense for 2011; 20 being the operating loan for working capital purposes, 10% being the interest associated with the operating loan.

that's 29M of net earning pro forma warrant conversion; 29M / 29M shares = 1 eps; apply P/E of 15, that's $15 / share.

 

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