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Re: retnav post# 26235

Wednesday, 05/11/2011 8:47:54 AM

Wednesday, May 11, 2011 8:47:54 AM

Post# of 94179
To consider a buyout of say $3 at anytime, one must see if that is viable. Buyers are usually will to cough up a market cap of 2X revenue or projected revenue in the next year. Since there are 642M shares, at $3/share, that's 642M X $3 or almost $2B. Who would pay $2B for a company with an idea, a prototype, and a first production of anything by the end of this year? If they can bring in $500M in sales 3 years from now, it would sell for half of the $2B or $1.50/sh.

Although this is entirely possible in a 2 to 3 year time span, it is unlikely in the near future. I would say if we are at a quarter by this time next year, we will be doing well.

Now if during this cheap time for WDRP, the company somehow funds and canels half their shares, the picture improves, but where would that money come from without sales?

Just trying to sell a realistic picture here. I think Wrinkles has the right view...a 2 year outlook for a buck, but even that will take all things going right and naked short sellers finding a different target from this one. When I say NSS, I mean the kind that is relentless and never covers, driving target companies into a death spiral. Regular NSS are in every stock, but they do eventually cover.

In the absence of that which is not, that which is, is not.