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Re: RisknReturn post# 280394

Thursday, 12/06/2012 3:34:51 PM

Thursday, December 06, 2012 3:34:51 PM

Post# of 326355
Rickn,imagine NEOM reached to 5 bil A/S cap and debt reduced to dozen mil and that dozen mil paid off by next two years licensing.
here we have NEOM debt free with 5 bil in o/s.
debt free NEOM with 5 bil o/s at pps of .01 comes to market cap of 50 mil.NEOM valuation today base of 1.7 bil in o/s and 43 mil in debt is at 50 mil as well......
Riskn,no matter how you spin at end comes to NEOM valuation.
if NEOM does 1/100 r/s base of 5 bil o/s the out come is o/s reduces to 50 mil and at pps of $1 again debt free NEOM valuation at 50 mil......the bad scenario here if NEOM dosen't get rid of YA 39.3 mil debt by consuming remaining 3.7 bil from 5 bil A/S plus all licensing and relicensing fees in next couple years.(for sure debt will mature in 8 months and possible NEOM restructure for another year)and must say why not or neom will fine financing for YA reduced debt.bottom line no matter how you spin NEOM valuation with debt and common stock cap always been around 50 mil and will be there till licensing changes to mass licensing and NEOM becomes ...industry standard....then bingo watch for valuation of +$250 mil