OK guys lets get rational...
What is a share of KAIH worth? No one knows for sure however in using deductive reasoning lets try this.
Known facts:
Last known profit by acquiring company $ 500,000 in 2005
Market value of company normally 10 to 20 times earnings
900,000,000 will be authorized and outstanding when H and H takes over .
For ourpurposes let us assume a market value on the high end of the 10-20 times earnings lets pick 18 times earnings. Since we don't have earnings for 2006 we will use the $ 500,000 from 2005.
18 x $500,000 = $ 9,000,000 market value
$ 9,000,000 market value divided by 900,000,000 shares = value of $.01 per share.
So todays price of$ .035 relects a value $ .025 above the rational value of the stock.(However if the earnings for 2006 turn out to be about $ 2,000,000 then the $ .035 stock price would be about right.)
Of course the "hype" buyers very seldom are rational in their reasoning. They just run from one mo mo play to another praying that this "will be the one".
What does the company think the value of the stock is? Read the 8K, the value they place on the stock in their example is $ .01.
How about that.
Read the SEC filings carefully and then invest. If you act off the Press releases you will be fooled.
Who was it that was arguing with my statement that this looked like a reverse merger based on the fact that the press release said that KAIH had "bought" H and H Glass.
The old bloodhound just giving the facts.
