nsomniyak:
Of course you are right, as Malc has said.
The key word in your post, however, is the word "shared"
What some people don't seem to understand, is that CHRI, if they go through with a buyout of HBRM, has already decided on a price, that they believe HBRM is worth.
And that price will be "shared" among all the hundreds of millions of shares that HBRM has outstanding, and apparently continues to issue.
The point that malc and I keep trying to get across is that HBRM is not worth 8-10 million, despite all the hype about future revenue.
If it is worth 1.5 million to CHRI, and there are 500 million shares outstanding, then each share will be worth .003, to give an example. Even if HBRM bought back 100 million shares, there would still be about 400 million, meaning a buyout price of .0375, in my example.
No way is CHRI going to pay .01, let alone .02, for this company, and HBRM management knows that, and yet they shamelessly issue more shares, and then issue press releases promising to buy back shares, intended to deceive gullible investors into buying their stock at inflated prices. The only way people make money on a stock like HBRM is to sell their shares to even MORE gullible investors, who have done even less due diligence than they have.
It is really appalling to watch.
AI
