Friday, April 01, 2011 5:20:05 PM
The value of the deal will be reflected in the quarterly report. Once the Q-Report comes out after the reverse split, they price will skyrocket back up to a reasonable valuation.
If the market cap halved right now, that would put the present P/E at 5.5x earnings with projected increasing sales over the next 2 years, no debt, and as it stands today about 500k in cash on a company with a market value of approximatly 5-6 million dollars (in your R/S scenario). That is a BUY. Even freshman finance students know that. Honestly, as I have said before, if the market cap gets halved after the R/S, find some cash and put into VTSI, because at todays valuation, the stock is cheap but at that valuation (6 million dollars), this stcok would be highway robbery.
I would gladly see my current holdings decrease to 50% in value to get an opportunity to buy some shares at that price. I dont think it will happen, but I will have cash ready to profit off of panic investors.
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