Drinks Americas Holdings, Ltd. (DKAM)

[sneaky_peaky]

That's right Boston. If they increase the OS BECAUSE of acquisition it's because they are ONLY going after brands that are profitable by themselves.

Let's say just as an example they buy Labatt and issue 100 million warrants at $1.00 to cover their interest. That takes the OS to 185 million when the $1.00 price is hit. If profits are $25 million a year, then in four years they recoup their investment. But it is much more than that as that $25 million a year in profit gives them leverage to go out and make another acquisition immediately without finding any capital to back them elsewhere.

As far as the market is concerned, it could easily take that initial surge of 14 cents a share in profits and give it a 50 PE on the 5000% increase in sales that came overnight. Then voila! Price is $7.00 and welcome to Nasdaq.

It's just that simple.