RE:RE:RE:RE:RE:WESTCOASTLOGGER ISFCA OR MAS.For every share of [the old] PHM you owned on Dec. 21 you now own one share of [the new] PHM plus 0.1 share of VMD. So...
[the old] PHM share count = 378 MM
[the old] PHM share price = 0.30
[the old] PHM market cap = $113.4 MM
[the new] PHM share count = 378 MM
[the new] PHM share price at Dec. 22 close = 0.22
[the new] PHM market cap at Dec. 22 close = 378 MM x 0.22 = $83.16 MM
VMD share count = 37.8 MM
VMD share price at Dec. 22 close = $2.40
VMD market cap at Dec. 22 close = 37.8 MM x $2.40 = $90.72 MM
Combined market cap of the two companies at Dec. 22 close = $83.16 + $90.72 = $173.88 MM
Thus, based on one day's trading, the market is assigning a combined valuation to the two new entities 53% higher than it did to the [old] PHM: $173.88 MM - 113.4 MM = 60.48 MM / 113.4 MM = 53%
The validity of this valuation will be clarified over the next few weeks as VMD shares appear in our accounts and real-world trading takes place. Less than $1 million worth of both companies' shares were traded on Friday, which is only 0.5% of the new combined market cap.
Some here are of the view that VMD is under-valued at $2.40, based on recent sales and earnings, and could trade at 2x, 3x or 4x its current price. There hasn't been much, if any, talk about where [the new] PHM share price will settle, but based on trading Dec. 22, it looks like 0.21 to 0.23 is the short term range.
For anyone who has held a substantial PHM position for years (like me) yesterday was great news. But I am not counting my chickens or booking my flight to Tahiti just yet.