Aluf Holdings Inc (AHIX)

[PhilCheeze]

Keep an eye on the coming balance sheet.
My guess is its gonna be close to $10m in net assets. Liquidation value is likely $10M. Based on the merger agreement filed on otcmarkets.com, the post merger OS will be roughly 120M with 100M restricted for 3 years from closing.
That leaves a small trading float of somewhere between 15m-20m.

Simple valuation numbers based on liquidation of assets is likely as follows:

$10M / 120M shares = 8.33 cents is liquidation value of WAFR.

Now when you figure estimated combined revs for 2012 of $14M.
Estimated net income of $5M we get:

$5M / 120M shares = 4.1 cents
Using a standard PE Ratio for semiconductor sector we get PE= 20

4.1 cents x 20 = 81 cent PPS
....
Using PE ratio of 10 = 40 cent PPS

I would have to say buying shares less than liquidation value between 3-8 cents is very smart money IMO.

Cheers,
PC