Post merger: According to the recent press release...
"Given a post-merger adjusted 1997 EPS of $.36 based solely on Firamada's earnings..."
If this rings true then the shell company would have only about 1.1 million shares outstanding. Look at the numbers below.
Shares as of 12/97 is about 20,000,000 with earnings of $0.1085. A post merger would be 4:1 for about 5,000,000 shares. At $0.36 a share, we would need about 6.1 million shares at $0.36 to get the same net income of $2,170,000
6,028,000 x .36 = $2.170,000 and
20,000,000 x .1085 = $2,170,000
Note that the actual shares are now 40,000,000 and not 20,000,000 so going forward will be less then the refigured "1997" numbers as stated in the news release above.
This gives two indications going forward:
1) That the shell company does have a limited number of outstanding shares, somewhere in the neighborhood of only 1M (unless the news release is incorrect). This should give us some direction as to who this candidate is, and
2) With a "post 1997" 4:1 split we now have 10,000,000 of FAMH and 1,000,000 of the shell company to give us a total of 11,000,000 shares. If FAMH is the only one with earnings then we have a post merger earnings per share of about 19-20 cents based upon FAMH's 1997 earnings
Note that the press release could be read the way I envision here or it could be 36 cents as stated. Comments? |
