Asberry 22 Holdings Inc (ASHI)

[bernardsamuel]

Happy New Year, Katloose, and thanks for reminding me that Monday is the legal holiday. It's funny how in retirement these details of regular working life can be forgotten so easily; without your reminder, I would have taken my recycle bin out to the curb on Sunday morning in anticipation of Monday pickup.

$10 million as a purchase price for the company - which is something like 11 cents per share - is defensible, given the sales uptrend. Somewhere upthread I came up with 9 cents as what the company would be worth if the toxic debt were to be refinanced (now essentially done) and the FDA regulations were to be made more manageable (on the near horizon due to new presidential administration). Still, from the point of view that nobody's going to pay around ten times the current price for anything, my guess is that you'll see something looking more like $5 million.

We'll know more on Tuesday. The one thing in all this that actually amazes me is that the stock price didn't have a significant bump upward in anticipation of the news, meaning that the story of the transaction actually didn't leak out in advance. Usually, somebody tells somebody who tells somebody, and that final person will spark a wave of buying in anticipation of the news, and the SEC will get a call from some unfortunate shmuck who wound up selling the stock too soon. In other words, after all the bashing we've done around here about the market-makers, the secrecy around this transaction suggests an honest marketplace.

And so, even in retirement one can still be amazed...