OSCR SPINS OFF a Division, unleashing GREAT POTENTIAL...
OSCR, is a very successful and profitable Company involved in E-Commerce and a new field: Fax conversion to e-mail and vice-versa over IP.... In a recent Press Release, OSCR disclosed that in the third Quarter, its e-commerce Division: shopps.com earned $6 Millions on $20 Millions Revenue and the Telecom Division earned $14 Millions on $60 millions Revenue, for a consolidated EPS of $1.20... At least $3.00 EPS is expected by investors at year end, December 1999. It has 16.8 Millions shares outstanding, a Float of about 3.5 Millions and NO significant debts...
biz.yahoo.com
OSCR announced yesterday that it's spining off its E-Commerce Division and that major investors are injecting $25 Millions cash in the new Company... It's expected that OSCR investors will receive a Dividend in the form of shares in the new entity (ticker AMMN), probably in the ratio of 1 for 5 OSCR shares, or thereabout.... The date of record has not been announced yet,but should be in the near Future, giving a strong incentive to buy OSCR shares at present time...
biz.yahoo.com
OSCR has surrounded itself with a team of top notch professionals: Edelman as PR, Loeb & Loeb as Lawyers and BDO International as Accountants, who have exercised extensive Due Diligence on OSCR prior to accepting it as a client... The 10 SB is complete and ready for filing subject to final review... Here is an explanation in layman's terms of the spin-off:
1) Outstanding shares of AMMN: 20 Millions post-split with 60% or 12 Millions going to OSCR... In addition, a further 2 Millions shares are issued at $12.50 each (value $25 Millions) for a total of 22 Millions.... Float indication is 2 Millions shares, which should provide some lively trading...
2) This transaction puts a value of $150 Millions on OSCR stakes, which becomes an ASSET for the purpose of filing for NASDAQ and based on 16.8 Millions outstanding, represents a value of about $9.00/share, excluding the other Telecom Assets...
3) The two businesses being very different required specialized Management with specific skills and had different financing requirements... It seems reasonable to assume that each Business will grow faster on its own and will benefit from the additional financing provided: $5 Millions for OSCR and $20 Millions for Shopss.com...
4) Conclusion: The Telecom Assets produced 14 Millions in Q3 Earnings, while those Assets just merged yielded $6 Millions for a total of $20 Millions. If the whole Company was valued on the basis of this deal, OSCR shares would be worth approximately: 20 Millions divided by 6 Millions, times $9.00 equals $30.00/share.... If the projected EPS of $3.00 at Year end materializes, a PE of only 10 would be required for the share price to reach $30.00...
All in all this appears to be quite a Good Deal for all concerned, as we should witness substantial appreciation in OSCR share price... In addition, IF the Dividend is 1 for 5, as previously suggested, one will receive 1000 AMMN for every 5000 OSCR which are expected to start trading around the $8.00 mark and logically rise to and probably surpass the $12.50 level...
Disclaimer: The foregoing is MY OPINION, compiled to the best of my knowledge to help with Due Diligence and no responsibility will be accepted for inaccuracies or omissions... I hold a long position in the stock and therefore may be biased... Carry out extensive Due Diligence and only invest what you can afford to lose...
Regards, F. Goelo + + +
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