Southern Home Medical Inc (SHOM)

[stock_peeker]

Share structure unchanged; that's good, however, there are already approximately 786million shares of Common, 10million of Preferred A, and 10.5million of Preferred C. Conversion rate for Preferred A and C shres to common is 10:1, thus the 20.5million Preferred A+C shares equate to about 205 million Common shares.

Thus, it appears any merger would have to buy out a heap of shares, particularly the equivalent of 786+205million=991million Common shares of SHOM common.

At $0.005/share that's about $4.46 million already. If it were to go to $0.01/share, that's about $9.91million.

If one looks at SHOM from a valuation perspective, the question is how much "Good Will" value might the acquirer be willing to pay (then write off on their income taxes).

'stockpeeker'