Replies to post #25 on Microwave Satelite Technologies Inc (fka MSHI)

[MLK]

I totally understand what you are saying, but it will only prove my point, so let's go for it.

You say to come up with a value for TKO's share price, you should "take their sales, divide by the float, multiply by a factor that you are comfortable with."

Okay, let's do it using the numbers we have already been discussing.

Before the MSHI spinoff, TKO had 70M shares and I'll project 10M in sales. That equals a .14 per share in sales price. We'll use a VERY generous mulitple of 20 and that gives me a share price of $2.80. Correct?

Okay, now comes the MSHI spinoff, so we need to perform the calculation twice. Only this time, we need to reduce the TKO sales by whatever MSHI was set to produce. So, of that 10M, I'll use 2M of it.

So, now the TKO share price using those same numbers with only 8M in sales should be $2.28. And, MSHI should be worth $1.33. But, in fact what has happened is no reduction in the TKO share price despite the loss of any projected MSHI revenue. And, because the market is continually rewarding MSHI, it leads me to believe that TKOs share price is overvalued and should be declining in lock-step with MSHI's rise. That is in fact happening since the spinoff, with the exception of yesterday.

So, as you can see, your calculations only validate my point. I love it when that happens

Again, the spinoff did not create additional value to me, the shareholder. It was merely a gimmick that may work for a few weeks or months on the market, but without real news, it will catch up to us.

And, the news that TKO has issued this week is again rank. No revenue anywhere. I swear these people do not know what a dollar is.

Yes, I would be even Stephen if I could get this to about $2.24, but doesn't look like it will happen anytime soon.

Pickett--Where are the revenues?