This is huge for DVMED of which FINRA/SEC has approved the $18,500,000 merger to come into the company with the approved new ticker to be PEDE effective in 20 days from April 25, 2017. It looks like something huge is transpiring here that I think some investors should begin to start paying attention. Here's why...
The last reposted Outstanding Shares (OS) was 11,620,312,500 shares. When FINRA approved the name, CUSIP #, and ticker changes... they also approved a 1-4000 reverse split. I must admit... normally I would suggest that such would be a bad thing, but the price of the stock post-split actually should prove to be the new bottom. Here's why...
With the previous OS above, the 1-4000 reverse split would make the new OS to be roughly 2,905,078 shares. I'm guessing that the new management will issue themselves some shares, but will keep the share structure tight as it appears that they are positioning the stock to trade on the NASDAQ or NYSE/AMEX if I had to guess considering the value of the company that has been approved to merge into the stock. As a worst case scenario, I think the post-split OS will probably increase to be no higher than double which would be roughly 6,000,000 shares.
The Supplemental Agreement filed below indicated that the company coming into DVMED/PEDE will be StroiTekhSnab LLC as its core operations generating $18,500,000 in Revenues and is on track to be generating over $22,500,000 for 2017 based on its exponential growth that is indicated per year since 2014: http://www.otcmarkets.com/financialReportViewer?symbol=DVMED&id=170510 http://www.sttsnab.com/
If you consider a 25% Net Profit Margin, that would equate to $5,625,000 in Net Income. Now let's derive a "potential valuation" for the stock by deriving an Earnings Per Share (EPS) with using a conservative Price to Earnings (P/E) Ratio of 15 per the formulas below:
Net Income ÷ Outstanding Shares (OS) = EPS $5,625,000 Net Income ÷ 6,000,000 OS = .9375 EPS
EPS x P/E Ratio = Share Price Valuation .9375 EPS x 15 Conservative P/E Ratio = $14.06 Per Share Valuation
Use the Substitution Property for any variable that might prove to later be different.
This means that the new PEDE could fundamentally be trading in the area of $14.06 per share. I believe that is significant considering the post-split initial price will be .40 per share. Even if I'm half right, the stock should fundamentally be justified to exist trading well over the $4.00 per share minimum requirements to trade on the major markets. Below is the confirmation of FINRA approval and more regarding the merger for those who have not seen this yet:
(For inquiring minds... FINRA coordinates with the SEC to make sure that the company is in good standing before ever approving a merger like this.)