Replies to post #16532 on Southern Home Medical Inc (SHOM)

[The Rainmaker]

CEO owns 300m shares or something like that he could retire 200m for all we know. Nice try, I'm buying more in the morning. The valuations for home healthcare mergers like this are through the roof. Huge money coming here.

[The Rainmaker]

Future Looks Bright For Home Healthcare Companies

Home healthcare stocks are relatively undervalued have room to grow.

M&A is picking up speed in a fragmented industry with 7,000 providers dominating 96% of revenue collections.

http://seekingalpha.com/article/3227466-future-looks-bright-for-home-healthcare-companies

[The Rainmaker]

Kindred Healthcare Inc. (NYSE: KND) acquired Gentiva Health Services valued at nearly $2b.

[The Rainmaker]

SHOM: Profitable, Debt Free, 20 Days or less from major merger news trading under a penny

[malt66]

Given the float is 462M which the balance is unused and in treasury. Second, preferreds don't usually get converted to shares of common unless they are issued to existing board, management and they wish to convert. Bottom line. 462M float, an exponential raise in revenue would have your numbers VERY conservative.

[malt66]

Second, you cannot compare SO with respect to revenues/cash flows like mature big board stocks. I'm sure you can find many OTC stocks trading at astronomical valuations compared to $SHOM on ABSOLUTELY "0" ZERO revenues or history only on POTENTIAL.

[saladbar]

Preferred shares are often on the books for years for nothing more than to maintain a majority ownership position. 786M is the number...period. Even if they add a 15M company to the mix via a preferred share transaction, the number is still 786M.

And if they do that, you're talking about a mature operation that would most likely look to keep "shares outstanding" low and raise additional funds via a private placement (restricted shares at a premium).

And food for thought, you only need a 15M market cap maintained for 30 consecutive days to qualify for the bigger boards and if we find that this is where we are headed, this one goes hyperbolic!