InvestorsHub Logo
Followers 240
Posts 12423
Boards Moderated 0
Alias Born 08/14/2003

Re: Orangeman3 post# 2356

Friday, 03/04/2005 11:16:27 PM

Friday, March 04, 2005 11:16:27 PM

Post# of 36792
Orangeman, look at where DisplayTek might be if Fayiz established the company with say 50 million authorized shares and current CTKH shareholders received one share for every 200 shares. That would put something over 20 million shares in existing shareholders hands and give Fayiz a great deal of fundraising flexibility with nearly 30 million shares available to him.

I would hope that if the DisplayTek rollout was properly done, the company could bring $2 or more a share, equating to one cents a share in CTKH. If it did, Fayiz could potentially bring in over $50 million by doing an IPO. The key IMHO is bringing the stock public with a major brokerage responsible for the IPO. It's possible that a major brokerage could create enough interest in the new issue to generate much higher prices, and therefore more than $50 million. However, if I were Fayiz, I'd keep some of my powder dry and only authorize perhaps 10 million of the new shares in an IPO, the lower outstanding shares could also generate a higher offering price.

It's just my honest opinion but it's very possible that the shares in DisplayTek, even with only one for two hundred, may be worth more then the shares in CTKH, the parent company.

Gary