The value of that 75% of shares in AYSI is worth significantly more, or could potentially be worth significantly more than a 2% royalty on net sales. $500k a year is not the difference between financing the new plant with internal funds and requiring outside capital...
$500k a year is not worth 75% of the AYSI business... 75% of net income margins of 15%-20% is > than 2%... Simple math and rational thought would tell you that he cares MUCH MUCH more about his 75% of AYSI than his 2% royalty...
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.