Read this fully diluted this stock should be 0025-0003
Ludlow Capital Issues Research Opinion on Relm Holdings, Inc.
Last Updated: July 01, 2010 - 4:10pm EST
NEW YORK--Ludlow Capital issues research and traders opinion on Relm Holdings, Inc. (OTC:RELM), a developer of financial information service technology, decreases 'speculative' price valuation target to $0.003 per share based on increase in shares authorized.
SUMMARY
In an all to common occurrence, it was learned today that on June 23, 2010 the Company raised their shares authorized from 1 billion to 3 billion shares. The news of this event was accompanied by heavy trading volume in the common securities early in the trading day, but ended down sharply as news of new corporate structure hit the market.
(read more: Time to Issue Rules Regarding Corporate Authorized Share Structure Changes)
This move may have been taken to make room for pending acquisitions under the parent holding company, but does change the valuation potential for this company going forward. To be fair, the Company may not have issued all the common shares up to the new maximum range of 3 billion, but with unscrupulous moves like this one must be conservative in their projections and base any new valuations on maximum potential dilution.
We still feel a fair-value for this start-up company to be in the range of $7 to $10 million for the time being, and since the total authorized has been risen to 3 billion, we are readjusting our price target on this securities to a 'speculative' $0.0025 to $0.003, which would still equate to a $7 to $10 million market cap based on full dilution.
Through their holding subsidiary, Access Versalign, Inc, the Company is expected to announce several new acquisitions within the financial information technology sector, which in turn could provide for increased revenues and cash-flow for the parent holding company.
