Beneficial Holdings Inc (BFHJ)

[wplong89]

"Neither of the officers or directors beneficially owns
the Company’s securities, although their compensation
agreements provide that they may purchase certain
stock in the event they bring the Company to sales
about $19,000,000.00 per year with at least 20% of
sales resulting in profit within three years. In that
event, the officers could purchase, at $.12 per common
share, up to 8 percent of the Company’s common stock".
To reap the fruit of her labors, C will have to either buy back shares or split at some point. For her terms to be executed, the company would have to make $3,800,000 profit. 10xP/E = $38,000,000. 38,000,000/.12 = 316,666,667. So an O/S around 320,000,000 is really what she would have to get down to, in order to make her terms profitable. Of course these numbers can vary greatly but my point is that the O/S needs to be reduced for her own compensation package to make any sense. Other than that, a $19,000,000 revenue business with 20% profit margin should be acquirable with a $47M LOC. I would imagine they used the $47M LOC as a major factor in determining her package from the get go. Last post of the day. Have a good evening! Go BFHJ!