Scepter Holdings Inc. (BRZL)

[alabama96]

I have little doubt that there will be a R/M. However the prices people think it will go to are absurd. From their own website about the IBOX table

"The table on the following page shows the four projects provided in this pro forma forecast as well as selected economic parameters for each. Of these four projects, only the first one is a project owned or controlled by BR. The other three are projects which BR are in or have been in discussions regarding their acquisition. These pro forma projections are only meant to present a possible picture of the Company’s future valuation and market value assuming similar acquisitions can be made."

http://brazosinternational.info/economic-analysis-and-financial-statements/important-assumptions-and-selected-economic-parameters/

"BR will initially focus their efforts on exploiting and development of RE’s existing asset, the Cameron Parish School Board lease in Cameron Parish, Louisiana. Once this project is underway, an aggressive acquisition program will be initiated. Members of the management team will be making contacts with their industry " That is their business plan? To exploit their one assets which may be producing 9 BOPD.

Look at the first year start-up cost. In salaries alone they want roughly $800,000 from the 1.1 million start-up capital. Who in their right mind would finance a company like this. The property alone was purchased for 72,000 by Renfro and he apparently is selling it for 720,000 in this R/M. So these executives want someone to finance their 800,000+ combined salaries, when the company is losing money. Hell, those salaries add up to more then the property is worth.

Also note "However, in order to achieve company market capitalization of $250 million, our asset base must be expanded. In order to do this in an expeditious manner, acquisition capital of $30 to $50 million is required." Where does this capital come from? R/S, then issuing preferred shares? Maybe that is what the delay is. The higher they can get us to take this thing, the higher the stock will be once the R/S is issued. Take BYS* for example. Someone found that there was going to be a 250-1 Reverse split by a link on otcbb.com. The company didn't release the press announcement until June 20th. If that link wasn't found, the stock split would have put the PPS at .80, but because it was found it is now .30.

Here is the tell tale sign of a R/S. Look at their Pro Forma balance sheet. Actually lets define what a Pro Forma Balance sheet is:

Pro Forma Balance Sheet: In business, pro forma financial statements are prepared in advance of a planned transaction, such as a merger, an acquisition, a new capital investment, or a change in capital structure such as incurrence of new debt or issuance of equity. Now look at their pro forma sheet here:

http://brazosinternational.info/economic-analysis-and-financial-statements/pro-forma-balance-sheet/

Cash or Cash equivalents equal 54 million. Now look at the shareholder equity, it is also 54 million. That is the capital they are looking for, 30-50 million. The only way to get this is a R/S and then a private offering of preferred convertible shares. Man, the deeper I look, the worse this is. Hopefully they will announce the merger is complete before they do the split and some of you will be able to get out. Could hit a few pennies if that happens.

Hope this helps some. I'm not trying to be a basher, but trust me on this one. No way the share structure is staying the same. If they didn't need to immediately raise capital, they wouldnt need to do a R/S, but that isn't the case here.