Replies to post #229 on Timberline Resources Corp (fka TLRS)

[teomax]

so lets put another speculation here:

Financing the deal is what I am afraid most, "SMD expects to reach nearly $100 million". By current revenues, they are around 4x bigger company then TBLC now
So just pure speculation, let say with 15% margin, they are netting 15 milion a year, so the price of SMD could be around $75-100 million.
I doubt TBLC will be able to get a such huge loan for acquistion. So there must be stock compensation (my estimate is around 15-20 milion of shares) together with some small cash amount (like 10 milions).
I only hope these guys from TBLC would be able make a great deal for us and for them too and not give new shares for 2.75 like in last PP.

you guys with connections to insiders, do you know if they are drilling on their properties already?

[forgreen]

Mike

I think 15% is more than fair. Based on some inquiries I've made that seems obtainable on SMD's portion of the business. If that equals roughy $15M and the OS is increased by 10-20M shares, then an approximate way of looking at it is the acquisition could immediately bring in anywhere from .65 to $1.50 in earnings for each share of dilution. Factored into the whole OS after closing, that could means something like .30 to .60 in earning added to the stock. These are all very rough numbers, but my outlook is the acquisition of SMD will generate significant value for shareholders immediately and seriously boost the bottom line at a very good cost relative to the dilution that occurs.

I don't know what the OS will be, but I'm confident Guill is getting on board to get wealthier through equity with TBLC's stock rising aside from whatever cash is used to complete the terms. I believe this will be structured fairly to TBLC so they both get win-win and the stock can go up significantly as a result of a great acquisition done on reasonable terms.