solid your evaluation is far more realistic than those using the current pps as a basis.
Just look at the company’s balance sheet and calculate the debt-to-equity ratio(a measurement of the company’s financial leverage, i.e. the company’s ability to borrow and repay money).
To calculate the company’s debt-to-equity ratio you divide its total liabilities by it’s total shareholders equity.
If the result is greater than 3 than the company most likely won’t be able to pay its debts off long-term.
As far as the properties now being in BVIG...
It doesn't matter what the assets are, if the company has no revenues.
Computing earnings on a dilutive share basis involves consideration of three types of securities: options and warrants, contingent shares, and convertible securities.
These securities are assumed to be exercised, issued, or converted, which increases the weighted average of outstanding shares upon which diluted share earnings are computed.
Since earnings on a diluted share basis assumes more outstanding shares, diluted share earnings are smaller than basic earnings per share. Thus earnings on a diluted share basis is the more conservative presentation.
After all the information is evaluated...
Only Corporate Level and further funding of NL properties will see a penny for the next two years.
Capital funding, Convertibles, and 'additional issuance of shares' as stated in the filings will put further pressure on the pps.
The share dividend is not a distribution of profits or earnings...
It merely increases the number of shares without affecting the firm’s assets. As a consequence, the same "pie" is divided into more pieces resulting in a larger number of less valuable shares.
If/When the share dividend is issued it will be dilutive and reflected in the market price.
That said...
It would be wise to remember the history of KATX.
News 
Market Data 
Discover 
