Replies to post #10685 on Expo Holdings Inc. (EXPH)

[suikoden]

And in all honesty, the more I reevaluate this, the more I think they should postpone these acquisitions until they establish a higher pps to acquire companies. The share structure is decent as it stands right now, leaving an extremely undervalued market cap. For a company that already will be doing around $10M this year, I think that leaves plenty room to appreciate. Once trading at a fair market cap, look for acquiring a synergistic relationship with other companies--ones that hopefully don't have many liabilities. Granted, I can't say anything because I don't know the terms of this deal or what Southern Candle's books look like, but I do know that EXPH needed financing 2 months ago and I would just hate to see them selling a ton of shares at these levels.

[profiteer11]

If you already have an established product line into retailers
it's easier to sell them something else
As far as I'm concerned, let's go ahead and sell them "everything." including the kitchen sink!