interesting from HOTSTOCKMARKET:...
Originally Posted by TaxBack04
Sorry... I took a break for dinner. Here is the short version.
This last week I have been attempting to reverse engineer the business model for this company since no fins are available for private company AERO. Realise that this is total guess on top of speculation, but is based on a company with a good product and brand, premium price and nationwide distribution.
Additionally, I have no idea of where the shares will settle, but with this being an acquisition that is structured like a reverse merger they can use the large AS and cash to purchase the company. With no cash available, I would bet they lean on the shares heavy and following the merger, the OS could be in the billions since 2B is needed to equate a 100M cash exchange at 0.0. A perfect reason for a reverse split to a more reasonable OS and AS share count.
(I know not a very positive outlook, but this would be one way for the PPS to go quickly beyond the 0.50 mark.)
A more positive outlook on the merger is based on a true RM where the management of the smaller company negotiates well the value of their shell. In this case the shares in the end settle somewhere under 500M and it is a much better deal for us in the long run especially if the revenue is where I think it is.
The $30M revenue was originally quoted as a minimum on the front page of this thread and is IMO very low for a company willing to spend as much as they are on NASCAR marketing. Once again pure speculation but I expect it to be low by a factor of 5, and revenue to be closer to $150M. You see if every muffler costs $199.00 to $258.00 Retail, but they are willing to allow a Race track to sell a $199.00 muffler at $130.00 a piece. They must be making at least $69 or 35% on each $199.00 muffler. To reach $30M revenue each of the 30,000 shops has to sell about 4 mufflers a year, and the Midas up the street from me had about 50 in stock, and said they sell about 20 a month. (Caution: That last figure could have been a sales pitch.) I expect that to be off, but I did make it my year sales figure.
In either of these scenarios, a reverse split and revenue of near $150M, or a 500M OS and $150M revenue. I see the PPS being over 0.05 and only my personal share count changing. I speculate one more time. I see a PPS correction to about $1.25 to $1.50 shortly after the company fins are published and a stronger jump verified in a quarterly.
JMHO... do not ever make your decisions based on a message board poster. In fact I have a beer in hand as I type this, so I could very well be a bit buzzed. Don't listen to me, but the numbers are out there, if you just know where to look.
AI
