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Technology Stocks : MOTG - Modern Technology Corporation

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From: rrufff10/4/2005 9:09:38 AM
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Here's the way I am figuring a goal for MOTG.

The company is indicating that they already are pretty much at their goal of $25 million in revenue and that the goal going forward is $50 million.

The uncertainty is what their capital structure will look like after the deal is finalized. I'm figuring they go pretty close to the authorized share limit fully diluted of 150 million shares, which is not bad.

Most shares will be restricted so the float will continue to be low.

If you take the $25 million figure for revenue and divide that by 150 million shares, you get .16 a share. Now clearly this is a wild eyed guess analysis but it shows the potential, considering the current share price just hit .04.

This is a BDC, Business Development Company, in essence a holding company where the investee companies create a speculative little mutual fund for microcaps.

I asked the company if there was a plan to take advantage of economics of scale in putting together these entities and here is their answer.

In regards to synergy:

The Company’s efforts to reduce costs are already underway as Modern Technology Corp. consolidates both accounting and operational redundancies.

Further, Modern Technology Corp.’s recent acquisition of InMarketing Group will add $11 Million in revenue this year and will further add significant Sound City revenue from InMarketing's buying needs and inventory management needs.
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