What we are buying is an asset that is worth about $80-$100 million
based on STS' current and pro forma revenues,earnings growth rates, relative P/E and its ability to generate government contracts in the next three years This is an incredible opportunity for us to acquire an asset for a great price.
Do you not understand what any of that means, because that's literally the only way you could honestly interpret that quote as stating a fact of value and not see it for the pure 100% speculation it was.
It's exactly what I said, they were basing their valuation on market cap (and projections) using a favorable model. Hence, my question to you of "did you ask what model they used"?
Again, how much revenue, exactly, was STS doing on the date of acquisition? It was, has been, and also will be, a speculative merger based on attempting to get a cheap up and comer under a public shell early, with the intent to bolster value and ramp up share price as the newly acquired sub grew.
You have no idea if Sym went into business with him knowing there was that past or not, their both military guys, maybe he just implicitly trusted him (which is of course, yet another obvious management mistake, but hindsight is 20/20).
There's strong evidence that even if Weitzel had built a successful company in the past, he was slipping mentally around the time this whole debacle went down any way.
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