Win/Win (even without the deal)
(I posted this on the Yahoo board, but does this make sense or am I nuts)
I want to make sure everyone is running to the same side of the boat here. This is not a win/lose scenario if the deal doesn't happen and I hope everyone realizes that.
I RARELY invest in the pinks, but BIHC is actually an interesting opportunity for 2 reasons.
The First:
If the deal goes through, I get at least $.x for my shares from the div. Affter that the market can set what ever price it wants on the shares. Probably initially a 1:1 cash/pps valuation, then diminishing unless mgmt sends out some PR's on what they are actually going to do with that cash since it doesn;t do me any good in their bank account.
The Second:
This is the scenario most are overlooking, but quite frankly should be realizing. if the deal doesn't go through everyone is nervous they will have lost all chance at profit - NOT TRUE. I realize most pinky investors are in for the quick HUGE gains, but those who are new to this or those who are smart will see that this isn't a train wreck if the deal doesn;t go through _ WHY??
Barons is actually a revenue producing company with some good contracts, nice bank relationships, etc. If the deal does falter, yes the stock price will tumble (we all know that), but... If Barons can bring in bottom line revenue for BIHC you may actually have a profit producing pinky. If Barons pulled in revenue of 1.5 million a year that would give us a valuation of $.01875/share (without a multiple and assuming outstanding 80 million shares). Now you'll probably need a good 12 months for reporting to see this reality reflected in the share price, but the point is as long as you don't sell, I don't see how you could lose with this stock.
Feel free to comment if this appear off base, but makes sense to me.
-Turbo
AI
