This is an old post by "Eddie Haskell" here regarding JGBO (GTEC) positions in LTUS and SPEH
Value of LTUS and SPEH to US based GTEC shareholders
Value of LTUS and SPEH to US based GTEC shareholders
US based GTEC holders own 25% or 100 mil shares of GTEC and will get a distribution from GTEC of the remaining assets of GTEC's old business, which is primarily their holdings of LTUS and SPEH.
GTEC owns 5.4 mil shares of LTUS (per 7/31 form 4), and 8.54 mil shares of SPEH (per 6/29 form 3).
LTUS is worth $1.50 today and is trading a fair volume of shares so that the LTUS stake is worth $8.1 mil, although they sold 680k of LTUS shares to a private investor in July for 55 cents !%^$%*&*^(&I^*O( !!
As to the value of SPEH, although it is trading north of $2, it's hard for me to see much more than 40 or 50 cent value in it based on their just released 6/30 financials with 5 cents eps - still at 45 cents, it would be valued at $3.8 mil (there is absolutely no trading volume in that stock)...
Together that's about $12 mil of value for LTUS and SPEH and since they only had debt of around $900k, the fair value of GTEC's holdings of LTUS and SPEH net to new US GTEC shareholders is about $11 mil or 11 cents per share !
I doubt we'll see that much as the only way to get that value would be for them to sell a portion and dividend the rest to GTEC shareholders, which doesn't appear to be the plan. As well, there are "winding up expenses", and these guys are VERY well paid... My guess is they'll find an "accredited investor" to sell the shares to and do a sweet deal with them...
BTW, I have read concerns that some are fearful of buying into LTUS because GTEC may sell. Hogwash - they own only 350k unrestricted shares (the rest are SEC 144 and can only be slowly based on 2% of trading volume in a month or after 2 yrs). They probably already sold the 350k.
LTUS is worth < $2.50 in a few qtrs easily... just my take.
Here is GTEC's last balance sheet (which understates the value of GTEC's holdings of LTUS and SPEH considerably). See how little debt they have ?:
GENESIS TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
June 30, 2007
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents ..................................... $ 18,284
Marketable equity securities, at market ....................... 514,869
Prepaid expenses and other current assets ..................... 37,649
Deferred contract costs ....................................... 385,595
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Total Current Assets ..................................... 956,397
PROPERTY AND EQUIPMENT - Net .................................... 13,000
OTHER ASSETS:
Restricted marketable equity securities, at market ............ 7,575,655
Due from related party ........................................ 5,376
Other assets .................................................. 19,583
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Total Assets ............................................. $ 8,570,011
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Loan payable - related party .................................. $ 325,000
Accounts payable and accrued expenses ......................... 361,631
Liabilities of discontinued operations ........................ 150,709
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Total Current Liabilities ................................ 837,340
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MINORITY INTEREST ............................................... 123,755
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SHAREHOLDERS' EQUITY:
Preferred stock ($.001 Par Value; 20,000,000 Shares Authorized)
Convertible preferred stock Series A ($.001 Par Value;
218,000 Shares Authorized;
15,400 shares issued and outstanding) ....................... 15
Common stock ($.001 Par Value; 200,000,000 Shares Authorized;
85,264,120 shares issued and outstanding) ................... 85,265
Additional paid-in capital .................................... 23,441,600
Accumulated deficit ........................................... (18,332,078)
Less: treasury stock, at cost (10,000 shares) ................. (2,805)
Less: deferred compensation ................................... (182,131)
Less: subscription receivable ................................. (182,340)
Accumulated other comprehensive income ........................ 2,781,390
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Total Shareholders' Equity ............................... 7,608,916
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Total Liabilities and Shareholders' Equity ............... $ 8,570,011
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