Replies to post #27962 on Signature Devices Inc. (SDVI)

[turn144]

Punk, Ken said 10% royalty to SDVI. Based on earnings this could be as much as $15-20M annually - assumes $300M acquisition. Based on O/S shares of 1,250,000 = $.012. Based on earnings multiples, could be anywhere from $.10 to $.30 / share. Remember few assets and very few expenses in SDVI.

Buy and hold, IMHO.

[Tuulikki]

Punk I'm confused. Why do you assume 30m graffiti and 1.25b SDVI

Assuming there are 1.75 Billion SDVI shares then the Dividend will produce 1.75 Billion / 200 = 8.75 Million Graffiti shares.

If all the 1.75 Billion SDVI shares were then exchanged for Graffiti at 200 for 1 that would produce another 8.75M Graffiti shares

Total 17.5m Graffiti if all SDVI shares are converted and no SDVI shares.

Where do the other 12.5m Graffiti shares and 1.25 Billion SDVI shares come from? Are they Ken's holding?