InvestorsHub Logo

stervc

08/07/12 9:26 AM

#128 RE: trendtraderz #127

trendtraderz & all, with this key SYAI filing...

That SYAI filing is a very good thing in my opinion. Thanks for sharing this piece of DD. It confirms that there is definitely not going to be a reverse split to make the acquisitions work.

On the contrary, it looks like they are doing a 5-1 forward split to increase the current Outstanding Shares (OS) from 81,182,219 shares to 5 times the amount to be 405,911,095 shares. It states that each 1 share of common stock will be converted into 5 shares of common shares. Read below from the filings:

http://www.sunbiz.org/pdf/37812596.pdf


Within today's market, that OS would still be considered a solid OS to capture the growth of a company, especially with calculating in the $12.3 million in Net Profits that was recently PR-ed. Let’s do so now to get an idea of where SYAI should fundamentally trade if everything continues to go as planned…

Earnings Per Share (EPS) = Net Profits (NP) ÷ Outstanding Shares (OS)

NP = $12,300,000
OS = 405,911,095 shares

EPS = NP ÷ OS
EPS = $12,300,000 ÷ 405,911,095 shares
EPS = .0303 per share

Considering a 12 P/E Ratio would justify the SYAI share price below…

12 P/E Ratio x .0303 EPS = $.363 per share

IMPORTANT: Now keep in mind that the above .363 share price is after receiving 5 times the amount of shares bought before the forward split date. The .363 per share is the post-split share price valuation which would mean that the SYAI pre-split share price valuation is valued to be at…

.363 x 5 = $1.81 per share (pre-split price value)

The above thoughts are what I have derived from first glance. All, please feel free to chime in if you see where I have interpreted some things incorrectly.

v/r
Sterling