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Thanks Struc, enjoy your posts and input as well! We have been on this ride together for a couple months now.. and believe our day will come soon enough! I am glad that you reminded me that they had discussed two mergers/acquisitions. It seems in light of the size of the energy company that would make more sense to me with regard to the sale of ASCC.
Good luck to you in your business, hope someday you sell it and make millions.
I think you might be right, I have been thinking along the same lines. Hope so! What a pop that would produce!
Struc, if the gas exploration company had 12 million dollars in assets and only 500k in liabilitys it would be worth much more then the 5 to 6 million that EVDR got from the sale of ASCC.
When I sold a privately held manufacturer to a publicly held company we had around 2.5 million dollars in assets.. 15 million dollars in annual revenue. We got a very good price for the company, just under 7 million. With a net profit in the area of $750k per year. (No I dont have that much money, LOL! divorce, taxes, and two partners)
I believe that EVDR has the capability to grow the gas exploration company. Look, at ASCC when EVDR bought them, they were only doing around 3 million dollars in sales in 2010. And had been in existence since 1984. Two years later they had increased in size over double, Could see the same here.
I think those weird updates by IR are by design.
Good analysis! I agree with everything that you said, with the exception that we know the gas exploration company has less in revenues then ASCC. That might leave room for the acquisition of a health care company since that also seemed at the top of their list. IR has brought up in the past not one but two acquisitions/mergers.
Yes, definitely the principles will take a cut of that 5 million plus, and yes I did in the past and would again.
Yes, it is extremely undervalued right now. Primarily because of the skull and crossbones and the specifics need to be filed on the ASCC sale. Terms of the sale, cash settlement is going to be very important. It has been reported the deal was for more then 5 million dollars, we just need to see something that is documented to back that up.
Get either or both of those things taken care of the pps will jump significantly.
Thanks Struc overlooked that. That would make more sense to me then just going for the gas exploration company. Calculating what they paid for that company it would only amount to around 2.5 million tops.. unless there is something that is hidden in the woodpile. They would have available capital left for another company (healthcare would be a terrific choice) And that would not only make sense but give EVDR some diversity in the future.
Hope so, I really like that approach!
I heard on the radio show that there was a health care company as well that they were interested in. What could really get interesting is if there was more then one acquisition. I could see that as a possibility, and that would be really smart on their part. What are the two hottest sectors out there? Energy, and healthcare...
They certainly would have their bases covered.
Also a possibility ( I know dont laugh) that Mina was telling the truth and they had a big investor loading up on EVDR.
I'm ready, Lets go! Going to be a great week for EGOH!!
Low float, very thin on the ask, right sector, reverse merger rumor, will at least climb back up to the 0.0050 mark, but looking for much more!
Just bought a miillion shares on Friday, hope to add more next week. Got tipped off by Penny Stock Whispers, alwsy seem to get me in the right place at the right time!
The reason I havent been looking hard for the natural gas company in Waco is even if we found the right one, they cannot talk either. A silent period goes both ways..buyer and seller. If we could find the company that bought ASCC on the other hand, filings, or talk to someone within ASCC? That would be a different story, they are not in a silent period now.. the deal is done. So we could at least find out the specifics on the sale.
That is what IMO will have the first impact on the stock pps.
Nice work Struc! But didnt EVDR say the acquision/merger was with a gas exploration company?
Yes, that is what I was referring to when I spoke of the filings. That should give us specifics on the sale, dollar amount etc.
This morning I have been trying to see if I could find out any information on the sale. So far nothing, I have went online to check the India speaking India Times. Also looked for contact information on ASCC in India. I found a number for one of the prinicples but it is an old mobile number apparently.
Will keep researching, if anybody else turns up anything in their dd let me know.
The news that we will hearing next should come from public filings. We will get the specifics on the dollar amount of the sale from ASCC.
I dont believe that IR will release any news today. The company is finalizing all the details of the merger. If I was guessing I would say right now they are in the paper shuffling period between attorneys... dotting i's and crossing t's. Acquisition should be completed next week, then the paperwork will be submitted to the SEC to remove the skull and crossbones. We are probably a minimum of two weeks away from getting more news from IR or the company.
Man I would hate to even guess.. but if I was I think a couple cents is very achievable on the conservative side.
Quite welcome!
I agree a merger is really not the right terminology but is used here. This is an outright acquisition. As far as what EVDR has to offer?
Why do any private companys go public?
Present management gets paid out for their blood and sweat they put into the company. Gives the company an opportunity to grow that they did not have before. (Cash) Also management in publicly held companys typically make more money then in privately held ones
Usual reasons
There are several things I like about this merger.
(1) look at the sector, going to get hot! hot! Natural gas prices will continue to rise as they are finding more uses and diversifying it for energy versus oil.
(2) This company is less then 4 years old and already have 3-4 million dollars in revenue! That is terrific in their sector! Tells me that their manangement is very aggressive.
(3) Look at their debt to equity.. 2 to 1 as I recall per the PR. That is also terrific for a four year old company! (Most banks love to see that type of ratio) Should be a slam dunk to get additional financing if the need should arise to grow the business.
(4) Financials are up to date. They wont be audited as they are not required as they are privately held. But they are current, and were scrutinized by EVDR at the time of the due dillegence.
(5) The company is less then 4 years old! Again I want to point this out, as this is the type of company that you want in a buyout. Aggressive and not the bad habits or baggage that older more established companys have.
I like this merger allot, plenty of upside, with growth potential, sector, management has to be solid for that type of growth and financials.
What is not to like here? It seems to me that EVDR made a terrific choice for a merger company.
Really hard to tell, I am with Boiler look at the level 2 in the morning and you should be able to get an idea. If I was guessing I would say the very lowest it will touch would be 10s but really doubt it, more likely 11s.
One thing for sure, we should see very soon a PR on the sale of the Indian sale specifics so these levels wont last for long.
Thanks Miami! I appreciate your kind words, and I have learned from you as well! Always appreciate your desire to answer questions, due dilligence, and honesty.
Thanks! Back at ya!
Thanks! Back at ya!
The quiet period is also normal protocal, when two companys are finalizing a sale. Even prior when the due dilligence is being done both sign an agreement not to divulge any info on the sale. This is a safe measure used by companys when they are being purchased. They dont want this to get out to the public before the deal is done. Competitors for one can use things like that against them. I know that was a big concern for me when we sold our company... if any news leaked out. Think of it from their perspective and you will understand why.
Wont last for too long anyway. Week or so probably at most.
EVDR is not the one to announce the amount of sale. The purchsing company does this by a formal press release. Particularly since they are planning on putting it on the Indian stock exchange. Once EVDR took the money and signed the contract to sell, all the PRS(Concerning the specifics of the deal) are released through the buyer. Other then a blurb to let stockholders know they no longer own ASCC.This info will be posted shortly by the purchasing company.
Sold a privately held company to a public one. That is normal protocal bro.
Most traders dont understand business, so they panic if things dont go down exactly the way they had them pictured.
As far as the milestones go.. the contracts have been signed.. paper shuffling to attorneys now. Wont take too long a few days, a week. Now the company can submit the paperwork to the SEC so we can get the yield. Everything is falling in place exactly as it should.
The milestones were selling ASCC and buying the new company. That has been done. Now we are at the fomality stages of making it official. This is a great place to be at!
Yep, this shouldnt take too long, seems they have negotiated the contract for the sale. Now paperwork shuffle shouldnt take more then a few days, week probably at most. Paperwork will go to the SEC right away so should see a yield soon.
This is setting up exactly as it should.
Sorry, I wasnt directing it towards you.. just to people in general. LOL
Not sure why everybody is so paranoid. Everything is as they have been saying all along. As far as PRS go, EVDR is not the one that will make a full disclosure on the sale of ASCC. I sold a private company to a public one, once that agreement is signed the purchsing company is the one to make a full disclosure. Including what the purchase price was. The company that bought it is planning on putting it on the stock Indian stock exchange so we should see that information soon.
As far as the company that they bought goes. What did they say that scared people? Debt to equity is great, (banks will lend all day long on a 2 to 1 equity to debt) Company must be aggressive for only being around for four years and having 3-4 million in revenues. And most companys prefer buying a younger company over an older one, less bad habits and baggage.
Quiet period? That is absolutely normal when the contract has been signed and the paperwork is going back and forth to attorneys. Both principles signed an agreement to that effect so as not to disrupt the sale, or make it public before they are ready.
We are fine people..
People are being stupid here, pure emotion.
This company is exactly what they said it would be 3-4 million dollars in revenues
What they are showing in the PR is the asset to liability ratio.. not the revenues
Some people here are selling because of the old adage, buy the rumor-sell the news. Others might be because they have mentioned the company is going to go through a quiet period.
Well they will until all the info is disclosed and they have the skull and crossbones removed. There are several things I like so far about the company.
(1) 2 to 1 equity to debt.. Solid
(2) Current financials.. good are they audited? Probably not since they are not public
(3) Been in business just the right amount of time.. no baggage, young company should be aggressive.
I have always liked that quote, so true!
Dont be surprised if they hold off on the news of the merger until the big investor gets fully loaded. Hope not, just saying.
Wow!! Really strange trading day so far, they must want that big investor to get in cheap!
Definitely MMS seem to be short of shares. Ask was really thin all day, people who tried to flip today complained that orders were very hard to fill.
Whoever that big buyer is hope he steps up tomorrow and buys up the rest of the float!
Then Min Mar is making money both ways! Up and down.. LOL!
Well seems like they have a real desire to have EVDR run big, I think this one could rival KMAG once the PRS start to hit!
Interesting! So the CEO Of KMAG and Min Mar got into it?
Could be! Just as well tell us now who the merger is with! Why wait till Friday?