Replies to post #29669 on Giggles N'''''''''''''''' Hugs Inc. (fka GIGL)

[LongCA]

Well, the offering is a prospectus and has yet to be approved. We don't know what the PPS will be if and when it is approved. What we do know is that we have seen 34m volume since August 15th, and someone or several people have been accumulating --- perhaps to increase share count before any offering.

Time will tell.

There was a recent email posted on the board last week. It seemed suggest PPS would be moving up, as I recall.

GIGL

[Gator328]

Right now the share price is around .025, give or take. It's slightly undervalued.

If each location can generate $300k profit, then two locations net $600k. With 135M shares OS, $600k/135M = .0044. Assign a 10x PE multiple and the share price should be trading around .04-.05 cents.

As for the offering, the CEO has no control over the stock price. I expect the offering to be at about .02/share, and would mean that 250M new shares would be issued. This would bring the OS to around 390M.

If we assume 400M shares OS just to be safe, and assuming they can open 10 new locations with the $5M, we'd have 12 locations each generating $300k net.

$3.6M net revenue / 400M shares = .009 EPS.

Give it a 10x multiple and you get .09/share.

So the offering would, in fact, be beneficial to the current PPS and the valuation of the company.

But, the truth of the matter is that Parsi never should have went public so soon. If I were him. I'd be looking at PE firms to buy me out and take it private again.

[hopeok]

I'm hoping that he has an announcement up his sleeve because, you are right.A rights offering makes no sense down here.

[Stock__Hawk]

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