Here's the thing guys... This is all in my humble opinion... OF COURSE ;)
The buyer wants the company for as little as it can get. .10 was a low ball deal that could have been paid for out of their petty cash drawer. It was a cash deal with a share exchange for their stock 10 to 1 or 20 for 2 or something of the sort and was to include a 1 time dividend (I don't know what that is but I speculate at .10 a share)
I imagine... that Jared is now having to convince the buyer that the contracts in hand including the Franchisee contract domestically and the "Many More than 6 contracts" (as per marks email to me) and what I read to be at least 12 if not 20 multi million dollar contracts... are worth a specific value to them. It is possible that some of these contracts are not in the Business model of the buying company, however i don't think thats the problem. They may not be able to turn around a quick realistic equal value buyout price for EESO with all of these brand new contracts!RIGHT AWAY At .10 cents this was a no brainer for them but now they need to crunch numbers, people have to have meetings, they have to make projections etc etc etc... Other deals on the table have to be reevaluated and the list goes on...
I think it's possible that EESO may be the biggest problem facing the fruition of this buyout! That's ok with me. However, Does jared have the juice to come back at a company like DOW? for instance and tell them what to do? Ehhhh maybe not. the purchasing company will do what it sees fit and if that is to tell J-Rod to "pound sand" then they'll do it... I don't think he'll let that happen though. Honestly though I don't have a clue as to the behind the scenes actions when it comes to the purchasing company... For them to buy an a**load of shares on the open market at a reasonable price and not drive the stock price through the roof is it possible? I'm sure that there are historical examples of companies doing that? I know that there was hostile actions against SiriusXM as far as buying up their debt to hold it over their heads? I think the same thing is possible with regard to common shares of EESO... Wouldn't that just be good business for the buying company/ As long as they're doing it legally? (or at least leaglish)
Anyways, We're going to see some interesting crap here in the next 10 days that's for sure... I added more to my kitty today and will continue to do it even if I have to do it in 10 or 20k blocks!!! (I've tried to grab as little as 1k at a time when I can... I have multiple millions of shares of EESO and I want more...
If we have 12 contracts with an average value of 8 or 9 million bucks (I feel like we'll have some very big paper from China so this is a low estimate in my opinion.) we're talking about another 100 million bucks on paper right now (again, that's a low estimate in my opinion but it works) add that to the 136 million and the Franchisee contract which I venture to guess a figure of 25 to 40 million (Mark has told me specifically it is NOT for 100 million which was a rumor going around) Also the South american business in the works... could metens of millions if it works out. Right there we're talking about EESO being a quarter billion dollar a year company THIS year only... that's a buck and a half to 1.70 a share with a P/E of 13.8 and that's a nice get for a big conglomorate that parcels out it's multiple business models like Dow Chemical.
Tell me you don't want to be the M&A guy that locks in a guaranteed 500-1 billion dollar profit for his Big Company over the next 3 to 4 years? and that is lowballing everything... Especially when 50 percent of the money is coming in from Asian Government subsidies!!! that's free freaking money as far as I'm concerned... So with all of that said if they could come up with .40 or .50 cents a share or the equivilant value with share exchanges and dividend payments Assuming they retire the 300 million restricted and have bought up another 100 million on the open market in the last month I think 300 million cash and 300 million in share exchange or dividend value is a reasonable price (making it about 600 million for 1.5 billion shares)
Anyways... I hope you folks take this post seriously because I don't post often and don't have the time or energy to battle your silliness... these numbers are IMHO as serious as a heart attack.
OH yeah! I forgot to even factor in GC2000?
Best of luck to you all and say a prayer that Jared is able to broker a mutually beneficial deal for us here. It can't be an easy for him right now. Especially with the likes of Allie's fake tanned A** bumping into everything!
OK that's it for me...
Chris
Know What You Own
