Isn't that typical of Pink?
It's because most don't do the math or follow stocks for years or ask questions at State and Federal levels around legislation or any other in-depth DD. It's the normal in Pink to get buyers to only focus on something that suggests a higher valuation without looking at the implications or ignoring the big picture.
Ask yourself why a business with historic valuation around the $22M - $24M market value in IHCH filing (at closure with Tenet) and recently PUBLICLY disclosed at a press conference was worth only $23M AT BEST, is trading well above that value at fully diluted over $100M? I don't see any justification for that valuation.
All the big chunks of QAF money through the end of 2013 (from prior legislation) are operating to clear the debt which brings value back to $23M (IMO). If you think OS, that's about 9 cents. If you think fully diluted, that's about 3.5 cent or 2x value at 7 cents for a buyout. Getting the collateralized real estate loan off the books is a big plus for the partners, as they can get better money off the real estate partnership on the leases. Currently, the loan reduces lease payments. That's why the deal works well in formula to get the loan reduced and the business back to low or debt-free. The partners what to make good money off the real estate and Chaudhuri wants to take the business in good financial condition (IMO). This is the first opportunity to approach that goal since the bankruptcy debt buyout in Spring 2010.
My past advise was swing trading between the 3 cent (or lower/higher at risk) and 7 cent (or above) range against Chaudhuri's last purchase of shares at 3 cents and the registered buyout of outstanding shares in his SEC 13-D. I've never change my advise over 3 years around the structured model of insider buyout and debt resolution formula.
