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Re: ProfitScout post# 5736

Sunday, 08/19/2012 12:25:34 PM

Sunday, August 19, 2012 12:25:34 PM

Post# of 7345
Helpful Technologies Inc. is a private company and according to their website are actually a revenue producing company. Being a private company they obviously don't have their shares trading on a public stock exchange.

Their forecast was to generate $8.1 mil in their first year of operations. If they really believe in that, why sell that part of their business for a mere 100 mil restricted stock in a shell company (less than 25% of the shares outstanding)? Why not take $250K to $500K and do a RTO? That way you will have publicly traded shares and you continue to own the majority, probably over 75%, of this supposedly lucrative business that will generate $72 million in 3 years and every year thereafter.

What's worth more, a one time influx of 100 mil restricted stock trading at a penny or less or an annual revenue stream of $72 mil?
Now, if you really believed in those projections,what would an astute business CEO do?