GREY:WEWWF - Post by User
Comment by
ddunon Jan 28, 2013 10:25am
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Post# 20898775
RE: RE: Article: Webtech Wireless rallies after sa
RE: RE: Article: Webtech Wireless rallies after sa Wise-guy, its all about relative valuation. Before the acquistion the stock traded at $0.24. The revenue of NextBus was a 1/3 of its total revenue and therefore the market was valuing NextBus at $0.08 per share. We sold it for $0.20 per share ($21 million/105 million shares). Now along with our other cash, net of what we have to pat the previous NextBus shareholders, we have $0.23 in cash. The company is trading at $0.29 which is $0.06 for its remaing business, which is dirt cheap. I think the remaing business sells for what Wireless Matrix sold for in December which is about $0.40 per share, so the total value would be around $0.63. In other words this stock is still greatly undervalued and should go up considerably.