Asberry 22 Holdings Inc (ASHI)

[bernardsamuel]

Good legal holiday, Hostastock,
As you always provide good input here, I thought it would be helpful to look into the VaporBeast transaction. So here's the source material:
VaporBeast

VaporBeast, ran an annual net income of $6.4 million, but that is pretax due to the fact that the net income flows right to the tax returns of the owners. So let's say that final net income after taxes would have been half of that, or $3.2 million. The transaction was for $26 million, so that's about 8 times the $3.2 million.

VHUB could run a final bottom line of about $1 million in this fiscal year if the sales volume crosses $12 million (that's a little bit less than just annualizing the first fiscal quarter, but remember we were told by the company that the second fiscal quarter is the slow period). So let's apply that multiple of 8 to the $1 million in earnings, and that would take us to an acquisition price of $8 million for VHUB. If there are roughly 90 million shares of VHUB, that $8 million comes out to be approximately 9 cents per share.

So, my friend, you've made a good case that based on a recent, known transaction (VaporBeast), VHUB should wind up being valued at 9 cents per share upon acquisition by PLY. Discounting by 20% to allow for the transaction failing to go through (per a previous post of mine), I'm going to guess that VHUB is going to run up to 7 cents around this time Tuesday morning. If there's a bidding war for VHUB, which is quite possible, that 9 cents could quickly turn into the 13 cents you've put out there in your post.

We'll all see soon enough what really does materialize...