Geerlings & Wade Inc. (fka GEER)

[ash111]

do u have any update here?,liking your DD-"PAI entered GEER(.015) at $1.00, valuing it at the time over $3M"

still thinking this has lots of upside potential while it's trading at only 38k cap.with 1.57m float


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Sunday, June 19, 2011 12:46:37 AM
Re: DocDiggler post# 43

Post # of 255

GEER major DD: Price target $1: Abacus Asset Management and PAI entered GEER in 2005/2006 at a strike price of around 1.00, just look at the five year chart. 2) The reason they would do this is because they saw that this shell was going to have good net operating losses as an asset. The NOL's, as came out last April, are up to $6M. If $6M in NOL's were applied to revenue, you would recieve about $2M in income tax free making it at least a $2M asset.

PAI entered GEER at $1.00, valuing it at the time over $3M.

My estimate is that since we don't know when PAI will pull the trigger on a R/M here, a .30 target is respectable as this shell has assets within it. If a private company moves into this, yes the current shareholders will be diluted a bit, but PAI is going to be looking for a company worth a lot more than just $3M or so to get their money back.

The 5 year chart really shows a lot, the PPS was over 1.00 for a long time, even though this was still a shell in 2005 and 2006, the only reason is becaue we can see the volume, it was PAI and Abacus buying in....which of course, those filings have been made which is awesome.....so there is no denying it.

PAI put in about 750 grand into this shell. They have big plans.