Replies to post #375 on Univercell Holdings (UVCL)

[MFridge]

Anyone receive any feedback on '07 projections?

[wallymac]

OK, first off the only way this is worth something is IF the merger happens. Secondly If the merger does happen I would think that since Pure Romance has the assest and business some type of R/S would be in order giving them higher value than those holding the empty shell. Not saying it would be completely negative since Pure romance has a good and profitable business model but also something that should be considered.

GLTA
Wally

[pual]

The following is what I was refering toin my previous post:

"Pure Romance will be the new company, with a change of name, change stock symbol, and new valuation. Pure Romance has growing Revenues and earnings of about $0.06 /share. So to value the stock of the new company, determine a PE Multiple. A very conservative Multiple would be 8.

$0.06 * 8 = $0.48 stock price

Theoritically, the new stock of Pure Romance should rise to $0.48 as investors become aware of the new company."

earnings of $0.06 is the issue:

1- It assumes earnings of $12,000,000 and 200,00,000 O/S. This number of O/S is the current one.

2- The earnings in question are not realy earnings but "A gross margin = to 20% of Pure Romance 2006 Revenues of $60 million"

Honestly, there is currently (with what we know) no way to forecast what the PPS of the new company will be. It may be slightly better than current one but I certainly do not hold my breath.