trendtraderz & all, with this key SYAI filing...
That SYAI filing is a very good thing in my opinion. Thanks for sharing this piece of DD. It confirms that there is definitely not going to be a reverse split to make the acquisitions work.
On the contrary, it looks like they are doing a 5-1 forward split to increase the current Outstanding Shares (OS) from 81,182,219 shares to 5 times the amount to be 405,911,095 shares. It states that each 1 share of common stock will be converted into 5 shares of common shares. Read below from the filings:
http://www.sunbiz.org/pdf/37812596.pdf
Within today's market, that OS would still be considered a solid OS to capture the growth of a company, especially with calculating in the $12.3 million in Net Profits that was recently PR-ed. Let’s do so now to get an idea of where SYAI should fundamentally trade if everything continues to go as planned…
Earnings Per Share (EPS) = Net Profits (NP) ÷ Outstanding Shares (OS)
NP = $12,300,000
OS = 405,911,095 shares
EPS = NP ÷ OS
EPS = $12,300,000 ÷ 405,911,095 shares
EPS = .0303 per share
Considering a 12 P/E Ratio would justify the SYAI share price below…
12 P/E Ratio x .0303 EPS = $.363 per share
IMPORTANT: Now keep in mind that the above .363 share price is after receiving 5 times the amount of shares bought before the forward split date. The .363 per share is the post-split share price valuation which would mean that the SYAI pre-split share price valuation is valued to be at…
.363 x 5 = $1.81 per share (pre-split price value)
The above thoughts are what I have derived from first glance. All, please feel free to chime in if you see where I have interpreted some things incorrectly.
v/r
Sterling
That SYAI filing is a very good thing in my opinion. Thanks for sharing this piece of DD. It confirms that there is definitely not going to be a reverse split to make the acquisitions work.
On the contrary, it looks like they are doing a 5-1 forward split to increase the current Outstanding Shares (OS) from 81,182,219 shares to 5 times the amount to be 405,911,095 shares. It states that each 1 share of common stock will be converted into 5 shares of common shares. Read below from the filings:
http://www.sunbiz.org/pdf/37812596.pdf
Within today's market, that OS would still be considered a solid OS to capture the growth of a company, especially with calculating in the $12.3 million in Net Profits that was recently PR-ed. Let’s do so now to get an idea of where SYAI should fundamentally trade if everything continues to go as planned…
Earnings Per Share (EPS) = Net Profits (NP) ÷ Outstanding Shares (OS)
NP = $12,300,000
OS = 405,911,095 shares
EPS = NP ÷ OS
EPS = $12,300,000 ÷ 405,911,095 shares
EPS = .0303 per share
Considering a 12 P/E Ratio would justify the SYAI share price below…
12 P/E Ratio x .0303 EPS = $.363 per share
IMPORTANT: Now keep in mind that the above .363 share price is after receiving 5 times the amount of shares bought before the forward split date. The .363 per share is the post-split share price valuation which would mean that the SYAI pre-split share price valuation is valued to be at…
.363 x 5 = $1.81 per share (pre-split price value)
The above thoughts are what I have derived from first glance. All, please feel free to chime in if you see where I have interpreted some things incorrectly.
v/r
Sterling
Sterling's Trading & Investing Strategies:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=39092516
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
