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Gold/Mining/Energy : Westrend Natural Gas - I.D.E. Hot Stock
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To: S. E. Baker who wrote (1534)7/24/1998 9:36:00 PM
From: Leigh McBain  Read Replies (1) of 2011
 
Steve, no argument that to get an absolute, we would need to know how many shares in this new organization (Skytex) actually exist. But I would be pretty confident in predicting that we are talking about say 4 million or better after just Skytop and Taylor, more with this Houston organization, if that goes thru.

Again that means that say if it was 5 million shares out and we need Skytex to be at $7.35 per share net earnings, for WRN to get to .10 net earnings, then Skytex needs to be making $36.75 million in "NET" income. Again I believe this is "possible", but not something I would want to just assume is going to happen. And I personally expect more shares than that to be out when all the dust settles. And all this is still going to have some work ahead of it to get things back above a buck, not just to it.

I don't want everyone to think that I am automatically assuming that this is a bad deal, we may very well wind up with a bigger piece of the pie than the 435K shares and it may wind up being a smaller pie (in terms of the number of shares out) than it looks like. There are definitely ways that this could turn out to be a very good deal. I just wanted to bring as much to the forefront as I could and the information available simply forces some of these questions to be asked.

Salut,
Leigh McBain

PS - have a good weekend everyone!
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