Another 20 million shares at 3.00 ? Peter if this is true, then this is the biggest SELL job I've ever seen.
You've gotta wonder why they would buy the assets of National Page for 13 million dollars. National Page have 80,000 subscribers. That's 162.50 for each subscriber. Last October, or I should say, October of 1998, they paid AT&T the equivalent of 170.00 per subscriber for AT&T's , AMD.
OK so lets say that establishes a fair market value for each subscriber, about 165.00 per subscriber.
MCLL decides to sell to three investors, 30% of the company for 51,000,000. Now they have about 6 million subscribers, so they have sold in effect 1.8 million, 6 millionths, for the sum of 51,000,000, or effectively 28.33 each!!!
Wow, this management is obviously desperate to make the first of a series of loan payments due in March of 2000. They must come up with the first of a series of loan payments by march, and I expect this is the only way they can. The fire sale of shares are not only dilutive, but the prospect of them selling another 20 million shares for a measly 3.00 per share is a further SELL job.
I'll be selling more of this dog on Monday for sure!! |
