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Re: chipdacup post# 27361

Sunday, 12/21/2008 2:34:11 PM

Sunday, December 21, 2008 2:34:11 PM

Post# of 86719
You are correct Boston and you win the prize! A deal like this one demands an up front cash payment. That means in order for it to happen, Kenny has to go get a hedge fund or two to lay out the venture capital. Then they will issue warrants of let's say 100 mil at $1.00. Then those one or two hedges start buying up stock on the open market and run it up to $5 or $10 or more to catch up to the street value of the company. Then they will take their converted warrants and cash those. Of course, then comes the Nasdaq listing and all sorts of beverage analysts in love with the stock. Let's say they get Labatt. They booked $25 mil in profit last year. Should we go to 185 mil outstanding, and the other business sales, we'll give them EPS of 15 cents. HANS had a PE avg of around 60-70 on its run. We'll give DKAM a 40 to be safe and that is $6.00. They will hold their core position for three years because as a hedge Kenny can tell them exactly who is making buyout offers and when. And then off we go again.



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