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Re: MarqueeGemFinder post# 10957

Sunday, 01/05/2014 11:19:31 AM

Sunday, January 05, 2014 11:19:31 AM

Post# of 14699
To Expound on INVA “Triangular Merger” & Valuations...

To further expound on that post explaining the two different types of Triangular Mergers, I believe INVA is doing such because it will allow INVA to have more flexibility to maneuver their debt to where the ”New INVA” will become more profitable because there would exist far less debt.

This positions management to then allow for the over $42 Million backlog of awarded contracts to get caught up and placed into the ”New INVA” which from the way how it appears to be structured will be a subsidiary of Imerjn (XUII) that is known as… NITH, LLC.

This means that Adam Radly has now ”centralized” his growth of companies under one operational umbrella while still managing the growth of these two separate trading entities; Imerjn (XUII) and the ”New INVA” (NITH, LLC).

For Inquiring minds, NITH, LLC was created in my opinion for the purpose of absorbing INVA into it to become the ”New INVA” either actually or existing as a trading entity as a dba (doing business as). Important to understand is that the significant growth of the “New INVA” will result in the significant growth of XUII (Imerjn). This is why I believe that it could be wise to own both INVA and XUII. So in the example I posted to explain the Triangular Mergers below, consider the following to reference certain positions within that post/link below:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=95448568
Target = INVA
Buyer = XUII (Imerjn)
Merger Subsidiary = NITH, LLC



Now let’s consider the following key points to help us to see why the decision was made to do this with INVA:

** INVA currently makes over $20 Million per year.
** INVA has over $42 Million in backlogs of awarded contracts which I believe will be executed in 2014.
** INVA has a newly identified $16 Million contract over 4 years ($4 Million Per Year).
** INVA Revenues Increased 90% to $7.6 Million for its last Quarter filed indicated below:
http://ih.advfn.com/p.php?pid=nmona&article=59277135
** Imerjn (XUII) & INVA CEO and Chairman are one in the same person until recently (Adam Radly).
** INVA has no new management that was put in-place as Officers and Directors upon the recent departure of Adam Radly departing INVA as confirmed from the NV SOS link below:
http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=bLOccNOpXXr39j8vV7XLdA%253d%253d&nt7=0
** INVA Authorized Shares (AS) is still 500 Million as confirmed from the NV SOS link above.
** INVA can only have an Outstanding Shares (OS) amount no higher than 500 Million shares.
** Imerjn (XUII) creates new subsidiary (NITH, LLC) and defines it to be INVA.



As stated above, INVA is known to generate over $20,000,000 Revenues currently for the year, but I believe that given that they have made Increased Revenues of $7.6 Million for their last quarter filed, I’m going to believe that this will be the new norm as a minimum for INVA to where they will be generating $7.6 Million x 4qtrs for Annual Revenues…

$7,600,000 x 4 Qtrs = $30,400,000 Annual Revenues



INVA has over $42 Million in backlogs of awarded contracts which I believe will be executed in 2014. Also, a new INVA contract was discovered for $16 Million over 4 years which equates to an additional $4 Million Per Year. Now add these newly discovered contract amounts to the $30,400,000 Annual Revenues derived above to get the new total for INVA Expected Annual Revenues indicated below:

$42,000,000 Backlog Contracts + $4,000,000 Newly Discovered + $30,400,000 Current Annual Revenues = $72,400,000 Expected Annual Revenues for INVA



It must be now understood that INVA is being restructured because of the INVA Expected Annual Revenues of over $72 Million that I have explained above to be coming into INVA in my opinion. It must also be now understood that much of the Debt/Expenses/Liabilities had to be either significantly reduced or removed out of the company to better position INVA to be better appreciated for its growth by investors within market. Because of this, I will presume a 75% Net Expense Margin to capture what all could exist to come out of the over $72 Million of Expected Annual Revenues for INVA below:

$72,400,000 x .75 Net Expense Margin = $54,300,000 Net Annual Amount to cover all Expenses/Debt/Liabilities

$72,400,000 - $54,300,000 Net Annual Expenses = $18,100,000 Net Annual Income

With an Outstanding Shares (OS) amount to be no more than 500 Million shares since it was confirmed from NV SOS database that the Authorized Shares (AS) for INVA is 500 Million and since we all know that the OS cannot be greater than the shares in the AS sitting within the Treasury. So, we can now presume a ”worst case scenario” OS to be 500 Million shares. Now let’s derive an Earnings Per Share (EPS) to be as indicated below…

$18,100,000 Net Annual Income ÷ 500,000,000 (OS) = .0362 EPS

To determine the share price of where INVA should fundamentally trade, we must multiply the .0362 EPS by the Price to Earnings (P/E) Ratio which is the growth multiple for which the profitable stocks within the Industry in which INVA exists to trade. Read the following links below to better understand why I will use the upcoming P/E Ratio after these links and the important consideration of the different usages of the P/E Ratio below:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170
http://www.investopedia.com/terms/p/price-earningsratio.asp

INVA currently exists within the Application Software Industry within the Technology Sector which has 31.40 listed as the Industry’s P/E Ratio so now we can derive below:
http://biz.yahoo.com/p/821conameu.html

.0362 EPS x 31.40 P/E Ratio = $1.14 Per Share for “Potential” INVA Valuation

I think that it is important to understand that there is a chance that INVA won’t obtain all of the money from their over $42 Million in backlog contracts all at once. On the contrary though, I think that it is just as important to understand that there is a chance that INVA “will” obtain all of the money from their over $42 Million in backlog contracts all at once. Keep in mind, these contracts have been backlogged months ago and very possibly could have been written/created to be backlogs until the time was right for the contracts to be placed into INVA… which appears to be very soon based on some of the actions that have transpired as I had earlier explained above.

This means that the logic should be consider to ”possibly” have a cumulative effect on the valuation I posted above meaning that it will build up to such valuation over time of which how fast might be unknown. Still, the $42 Million represented 58% of that $1.14 per share valuation. Even if you totally eliminated the $42 Million, then the remaining 42% of that $1.14 per share valuation is the amount to represent a minimum value for INVA which would be as indicated below:

$1.14 x .42 = .478 Per Share “Potential” Minimum INVA Value

I think that this is important to understand that the above valuations are not the gospel. With the above valuations, it is not about any kind of historical references of valuations that have or have not come to exist in any other stock. The above valuation is primarily based on INVA executing one of the Triangular Mergers that I spoke of above. If they never execute one of the Triangular Mergers above, then this post will never mean anything. However, if they do execute one of the Triangular Mergers above as I had explained, then this post might prove to be a helpful tool to get maybe an idea of where INVA should fundamentally trade. Also, for any variables that changes that apply to any of the formulas above, use the Substitution Property accordingly. Even if I am only half right or even less, it still should result in INVA trading at far significantly higher levels than where it’s trading at now. I am convinced that Adam Radly is not going to do wrong by his shareholders.



Key websites to be familiar with…

INVA Website:
http://inovatechnology.net/

Imerjn (XUII) Website:
http://imerjn.com/


For those who are new to INVA, it might be good to read the post below to better understand all of what I had explained above. Again, consider the following to reference certain positions within that post/link below:

Target = INVA
Buyer = XUII (Imerjn)
Merger Subsidiary = NITH, LLC


http://investorshub.advfn.com/boards/read_msg.aspx?message_id=95448568
INVA & Types of Triangular Mergers…

In my opinion, I believe that based on reading through your due diligence (DD) here with INVA, I believe that there is going to be either a Forward Triangular Merger or a Reverse Triangular Merger to benefit us current INVA shareholders. Observe the structures of them both below:
(Reverse Merger does not mean Reverse Split.)



Also, something else to consider about a Reverse Triangular Merger is indicated below:

http://www.investopedia.com/terms/r/rtm.asp



There are more thoughts on this issue that I will later organize to further explain the magnitude of what I believe is happening here with INVA when I get more time. Psychologically, INVA will be going away, in reality, it will be re-emerging as a new entity which is where we as current shareholders of INVA will reside with our same amount of shares we currently own in my opinion. I believe INVA is being restructured to greatly mature and benefit us current shareholders by becoming a very serious investment of tremendous worth and merit.

v/r
Sterling



Key INVA DD Posts to Understand:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=95437826
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=95241238
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=94623893
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=94350100
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=95233267
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=95235117
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=95234331

From reading the post below courtesy of 1-eye-jack, I believe that there are two transactions taking place to consummate all what I have explain above:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=95463365

I believe there is first a deal with INVA with XUII to exchange INVA’s previous subsidiary (TRAKKERS) for $4 Million in Debt and another $2 Million in cash to go towards further debt reduction.

Second, I believe that INVA will become the operational entity to somehow exist within NITH, LLC which is the subsidiary of XUII.

I think buybio2 did a great job in simplifying an explanation of what is believed to be happening here with INVA:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=95479043

v/r
Sterling

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