ERF Wireless, Inc. (ERFB)

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Think outside of your box...

If you were an investor with $10m to invest, would you buy 50% of a company with it, if you didn't think that the whole company was worth $20m? At that very moment the ink dries, that is the going value or market cap of that company. Once it starts trading the value goes up or down based on the public's willingness to buy and sell that stock...

So your example of ERF is an example of when the retained earnings on the balance sheet are less than the original purchase price... that is what happens to stocks that don't perform. But as trends do change so do balance sheets.

So, for someone who has done a PP, the opportunity exists to peak under the hood and see what the insiders see. If the muscle is there, this baby cruises. Let's see what EBI might have to offer... traction, revenues, branding, and customer orders... and potentially a whole bunch more orders... so if I had $10M, I'd only put it on the table if what I just bought was worth that much right now... I'd set the market price at that minute. Come the very next trade on the open market, that price changes, it goes down if the public thinks I just made a bad deal (or doesn't see the potential) or vice versa... but as the investor, I will wait for the engine to rev with my new capital and let the following 10Ks prove me right. Then the PPS goes up and the $10M is worth some multiplier higher than its original value.

So the question is... if it is the plan to raise money, how much and what percent of the company will they get? If they do a PP, it won't be hard to do the math to see where we are going.

JMHO

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