GREY:CHALF - Post by User
Comment by
Puffdragon6969on Jul 08, 2020 1:34pm
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Post# 31240351
RE:RE:RE:A basic question
RE:RE:RE:A basic question 1) if you remove 22 million of debt from a 16 million dollar company with 20 million a year in sales does not make a 160 million dollar company.
2) seems like a impossible situation to find someone to spend 20 million for a billion shares of a company for only 50% ownership of a 16 million dollar company. They could probably do a hostile takeover for a 20 million and have almost 100% with the same amount of cash. Also it this effect adding 20 million to a 16 million dollar company doesn't increase the market cap 10 fold.
they don't have the assets or potential sales in the pipeline to support such a increase in market cap with either scenario.
But it was fun to read :)
Orwellian1984 wrote:
Its EBIDTA is better shaped compared to many competitors but not the debts. If the $22 M total liability goes to zero the fair price could be even north 20 cents. This mean x10 increase in market cap. This is a no brainer for investors. If GLH can find new investors paying $20M for 1B new issued shares at 2 cents, all win very fast: the 10 fold increase in market cap means 5x increase in price (in spite of 2x dilution)