kthomp19 Saturday, 01/12/19 10:17:47 PM Re: Fully Diluted post# 491644 0 Post # of 527786 Quote:Because the 2 companies together have a value of about 300 billion dollars when they are recapitalized. That corresponds to a conservative P/E ratio of 15. Both of those numbers (the $300B market cap and 15x multiple) are wildly optimistic, compared to both the Moelis projections and any other that I have seen. FnF earnings are much more likely to go down than up with Calabria at the helm. Quote:How many shares are outstanding? 1,8B With Warrants: 9B What is the value of the JPS? approx. 32B? What's PPS? In this case: 208B/9B = $23,11 Now you have your $20+ That's without a junior conversion, but more importantly that's without any secondary offering whatsoever. Where is the money going to come from to recap the companies if not a secondary offering? And why would that money be willing to pay a price per share higher than that in the market? Shares outstanding now: 1.8B Shares issued via junior conversion (half of shares converted at 6:1 ratio): 7.95B Warrant shares: 39B Combined market cap of companies: $200B Price per share: $4.10 That's without a secondary offering!