Southern Home Medical Inc (SHOM)

[stock_peeker]

On what do you base your Penny/sh prediction? A Penny/sh would amount to a total purchase price of almost $10million (based on 786million shares Common plus 20.5million of Preferred A and C).

OK, I'm honestly trying to be positive here, but $10million still seems pretty expensive for a company with only $1million in revenues and merely $60,000 annual profit.

Still there are other value factors that SHOM includes.

The value of SHOM seems to consist of at least 3 major components:
1. Approximately $.5million in assets,
2. A stable established slightly profitable business bringing in roughly $1million/yr in revenues with no debt.
3. The value of being an existing listed stock.

I'm not sure how much money it takes to get a company listed on a stock exchange, but I'm sure it takes lots of time and money to get listed and meet all requirements for audited financials. I'm just not sure how much that is worth. Of course they can change the name and symbol later.

There is also value to an acquirer if they are in the same business, thereby benefiting from economies of scale, and the combined business would allow cost cutting to improve profitability.

However, IMHO, the total value of SHOM still does not look like a penny a share to me. Of course most on this board do disagree with that.

'stockpeeker'