Been wondering about the Argo acquisition and very puzzled by it. Let's say you own Argo and you are producing $10M/year in revenues. I know based on this number only, you can't place a value on the entire company but if we had to place a number on a company that kicks out $10M most would say the company would be worth $100M. Or we could just say it would be worth a "Ton". Okay, now along comes a pink sheet penny stock company that offers you 10M shares for your company and its priced at less than 1/2 buck/share (.32 today). Hmmmm. $3.2M in stock by a company that is in pinkyland. Then they put a restriction on your shares. I heard 2 years. I also heard the total price was 10M in shares. So you contemplate selling your company for $3.2M worth of restricted stock that you can't sell in 2 years. What is the average life span of a penny stock company? Not long. Most penny stocks are worth less in 2 years than more. Argo responds, "Are you friggin nuts?" Raphael smiles and says "Take a look who is behind door #3 (QCOM)". A few details are exchanged between all parties and Argo says, "Where do we sign?" Pure speculation. I'm in this for the long run whether this company is bought out next week, next year or never. But this scenario would sure answer why Argo did this deal:
($20 x 10M = Argo agreeing to do the deal). Again Pure Speculation but give me another scenario as to why Argo did this.
In any event, the current pps of MCCY is 10% of the actual value it should be if they only had Argo by itself. Pass the popcorn, this is going to get very entertaining real soon.
Disclaimer: My comments are purely my opinion, may change at any time based on market & other conditions. Do your own due diligence before purchasing or selling any stock. Do not buy or sell a stock based on my opinion.
