Microwave Satelite Technologies Inc (fka MSHI)

[MLK]

Again, you are missing my point. Why is this so difficult?

Look, TKO with MST in the fold was sitting at $2.10 per share. Correct? So, assuming there were $70M shares outstanding, that would put the company's value per the market at $147,000,000. Correct? That already takes into account the $50M in revenue promised by Pickett in 2007.

Now, they come up with this voo doo economics and spin out MST and create MSHI. All the parts are the same with the same anticipated revenue for 2007, except they now trade as two companies. So, because MSHI is trading currently at $1.65 with say 30M shares outstanding, it is worth $49,500,000 according to the market.

And, yet, TKO is still trading at $2.01, which with 70M shares outstanding makes it still worth $140,700,000.

Now, you factor in the fact that TKO owns 60% of MSHI, which when it is trading at $1.65 per share, equals a value of $29,700,000 this slight of hand has supposedly increased TKO value from $147,000,000 to $170,400,000.

What justifies that increase? Nothing. They haven't raised guidance for revenue for either company. Nothing has happened except that they trade as two companies now.

So, my argument is that if the market valued TKO at $147,000,000 before the split of TKO and MSHI, it should be so valued now. It is most like a stock split...nothing has really changed, except the fact that the shareholder has more shares. In this instance, the TKO shareholder doesn't even have more shares, and the company's value really hasn't changed.

It is just another gimmick from Pickett, et al.