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Re: Andy1103 post# 21033

Monday, 06/04/2012 9:35:01 AM

Monday, June 04, 2012 9:35:01 AM

Post# of 90365
Well do you recall the fact that the merger has been approved by Finra?
That means the quiet period has ended. It also means that with CWS added to the equation the assets and contracts earnings and profits associated with CWS all become a part of the new WAFR companies valuation.
As a hint of value the $10m line of credit is not a loan it's a credit line the company can use to borrow against assets.
I have a line of credit for my business. The line of credit is secured by actual cash held in an account by the bank that has given me the Loc. Other LOCs can be secured by other assets such as land, buildings, equipment, cash, receivables etc. The point is that these are secured Lines Of Credit.
Ask yourself, considering the above, what would the asset value of a company need to be to secure a $10m LOC?
Now do the math. $10m divided by # of shares in the O/S. I'll use 26m. That gives you without knowledge of anything else a value of .39/share base value. We are already grossly undervalued here at .15ish and that's without any other factors being considered other than what could be stripped and liquidated today for cash.
Put a future earnings multiplier on that of 10x, 15x, 20x? What do you get?
When the market wakes up and smells what WAFR has been brewing they will be running with their bonus cups in hand to get some.