Replies to post #22348 on Aluf Holdings Inc (AHIX)

[PhilCheeze]

Keep an eye on the coming balance sheet.
My guess is its gonna be close to $10m in net assets. Liquidation value is likely $10M. Based on the merger agreement filed on otcmarkets.com, the post merger OS will be roughly 120M with 100M restricted for 3 years from closing.
That leaves a small trading float of somewhere between 15m-20m.

Simple valuation numbers based on liquidation of assets is likely as follows:

$10M / 120M shares = 8.33 cents is liquidation value of WAFR.

Now when you figure estimated combined revs for 2012 of $14M.
Estimated net income of $5M we get:

$5M / 120M shares = 4.1 cents
Using a standard PE Ratio for semiconductor sector we get PE= 20

4.1 cents x 20 = 81 cent PPS
....
Using PE ratio of 10 = 40 cent PPS

I would have to say buying shares less than liquidation value between 3-8 cents is very smart money IMO.

Cheers,
PC

[doggone]

mulli, well we got that dip into the 3's and MUCH, MUCH more. Do you think Q will be filed anytime soon or maybe Teresa has lost her pencil again? Do you think there is any chance it might be more 'respectful' than last if nd when it is filed? Dog, right then, rioght now