Value Microcaps Motherboard

[kipp440]

nsomniyak - I disagree that EZM upside is pre-empted by the merger.

Look at the August presentation Lundin gave, here is a link:

http://www.lundinmining.com/corporate/presentations.php

Here is what the new company would look like: The new company had $281M
in revenues during the second quarter($168M + $113M). The new company
had net profits of $108M during the second quarter($71M + $37M). The new
company will have 93M shares outstanding(41M Lundin plus 53M issued to
EZM holders). The new company earned $1.15 per share in the second
quarter. The new company had positive cash flow of $137M in the second
quarter($83M plus $54M). The new company should do about $330M in
revenues in the third quarter. The new company should earn about $150M
in net profits in the third quarter or about $1.60 per share. The new
company should have $160M in positive cash flow in the third quarter. If
the market valued the new company at ten times earnings based on the
third quarter the stock would be $64.00. The EZM CEO would be CEO so
basically EZM is taking them over. My guess is that they are using
Lundin stock to essentially do a sort of a reverse split. EZM will no
longer have all those shares out there like they did before. Now the big
question is does somebody else step in and make an offer. We now have a
company with 1/6 as many shares outstanding and with about eight times
as much share earnings in the third quarter compared to what we would
have had($1.60 compared to .20)

Kipp