GWOW comment & update
Updated valuation and added comment on merger numbers...
October 12, 2007 valuation update:
This illustrates the value of owning a piece of this low float issue:
Market cap at Monday bell close of .25 = only $925,000
When you have a moment take a look at CSBR, another shell I own that has some things going on, it is trading at a 30+ million market cap.. its has about 30 m o/s (9 times the o/s of GWOW) Went from .01 to 1.15 and is holding well...
Any private co merging into this will create at least a 4-6 m market cap, possibly much higher....
3 m market cap = .81 share price
4 m market cap = 1.08 share price
5 m market cap = 1.35 share price
6 m market cap = 1.62 share price
A 6 million market cap these days is considered very small, these are reasonable and conservative expectations....
If they were to merge with a firm that dictates a 20 m market cap this issue will be worth dollars..
Example.. 3.7 o/s shares currently, expanded to give the public shareholders a reasonable 10% of the merged company.. this would put the shares o/s at around 6 million or so....
A 20 million market cap would put the share price at an astounding $3.25+ ... hard to believe.. but it is simple mathematics... cut it in half if you believe the public would only end up with a low 5% - this still commands a $1.70 share price... price most likely would be somewhere in between based on numbers from recent merger activity and transactions that are readily available to the public via filings...
