Replies to post #10288 on Sulja Bros. Building Supplies, Ltd (SLJB)

[pennyjunkie]

IMO undervalued because...
1. unsolicited pink sheet
2. consultech obscure company
3. company claims naked shorting
4. circulation of spam fax (even if not by company)
5. no definate proof of merger
6. MMs depressing price to avoid covering
and probably more I didn't think of

[rrufff]

Let's face it, that's a good start to an analysis. But if you go that way, you have to give them perhaps a 40PE, given growth, etc.

But-the real play here is the float and capital structure, combined with the promise of a play that minimized dilution because of asset base - largely r/e - financing.

If the company is telling the truth, and we have in writing in about 10 PR's, then the move over .05 solidly, should cause a run, and that's irrespective of fundamentals.

It's strictly demand for shares vs. supply of shares. That's the basic formula for a share's price movement. If there really are no real legal shares in the supply, then virtually any demand should create a huge run. We've had very little volume the past few days on the consolidation. Watch to see what happens when the volume returns.

[MarionPolk]

This is my problem. If we assume that the Sulja numbers are accurate, Sulja has to be worth a MINIMUM of $ 20 million dollars, so there is no way they should be willing to "merge" for 200 million LFWK shares, unless those shares are trading at an absolute minimum of $ .10 each, and $.20 would be more likely to be a minimum for the merger to proceed.

Given the current stock price, either the merger should fail to close, or we must assume Sulja's numbers are significantly inflated.

Then there is the $ 10 million "loan obligation" that is "waived". That alone is more than the current market value of the 200 million shares Sulja is getting, unless there are additional undisclosed shares exchanged for the debt.