Don(and Frank and Harold and the rest). Since the company does not gives us much to go on, lets try an exercise at valuating this company.
They have trhee restaurant, I would guess these are carried on the book at $5 MM each. I doubt they have nuch invetory and receivables, so that should more or less be the book (and I think this is generous and furthermore, a large part should be equipment which needs to be deprecuiated rather fast in this business). From Yahoo the book value is $.34 per share, but that was before the massive dilution, yet, the dilution supposedly occured at $.4/share above the then stated book value. However, we must take into account that they reduced their debt by paying $.4 on the dollar, so their stated losses probably include a lot of these "phony gains" (well these are not so phony after all). Without much additional info, I would venture an initial guess at $.25 book value right now.
Sales from these three restaurants could reach, let say $12 MM bucks? Profits, I wish I knew.
However, these numbers do indicate that the current price (if the company survives the current turmoil) might be a bargain since we are buying here at about 50% discount to book and at 50% of annual sales.
If anyone has better guesses on the numbers, let try and see what we can do with these.
Zeev |
