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Re: ConnorStocks post# 15499

Monday, 04/04/2016 11:15:55 AM

Monday, April 04, 2016 11:15:55 AM

Post# of 21105
Let's assume for a minute you are right about the stock being diluted.
Let's assume 200+ million additional shares takes us up to the authorized limit of 625 mill shares. Let's place an average value on the stock at that level:

The average trucking company trades at .73X annual revenues.
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/psdata.html

If 2016 HPTG revenues stay FLAT compared to 2015 revenues they have approximately $27 mill revenues.

27,000,000 x .73= 19,710,000
19,710,000 / 625,000,000= $.0315 per share

Keep in mind, I don't believe the shares will be diluted to the maximum authorized. I think management will or already has worked out a way to repay the remaining toxic debt to avoid this kind of dilution. It's my opinion but that makes the most sense to me.

Keep in mind, the company already said (On March 22) that their purchase of new trucks will add an additional $3 million to revenues so my $27 mill is probably low.

Keep in mind that Pro Star had earnings $1.15 million in 2014 and broke even in 2015. They have made moves to help improve profits in 2016. (i.e. moving operations to tax friendly Indiana & saving $250,000 annually on leasing fees by "buying" new trailers)

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