Hi Mark! Take a look at an earlier response I had to a similar question...
Message 3813840
Then think about this...
FAMH is currently traded as an OTC:BB company where it is next to impossible to be considered fairly or even taken seriously.
There is a HUGE benefit to becoming a NASDAQ company.
FIRST, On NASDAQ, stock price is driven more according to supply & demand. It's not a perfect market, but no market is perfect.
On the OTC:BB, the stock price is controlled to a great extent by the market makers and is subjected to the risks of more manipulation.
SECOND, Companies on NASDAQ are considered more seriously by analysts, brokers, and investors all across the country and around the world.
FAMH on NASDAQ will draw far more attention (and investment dollars) than it ever would on the OTC:BB.
Once on NASDAQ, there is FAR more DEMAND for stock of companies that have the characteristics that FAMH has. Obviously with only 12 million shares (and only about 3 million shares in the float), there will not be many shares in the SUPPLY to fill the DEMAND. The price goes UP!!
Frankly, with the rapid growth plan FAMH has, combined with the high profits from the financing division and the TV show, in my opinion, FAMH could reach a very high P/E trading multiple!
As a matter of fact, I think it could go as high as 50, 60, 70 times or more! Those multiples are not that unusual in this industry.
Regardless of whether FAMH is at 60› or $1.60 at the time of the merger, I expect it to quickly move into a trading range that's more in line with the industry.
I also think FAMH could even reach as high as $50.00 or more per share in a year (based on 1998 EPS PROJECTIONS).
The "value" of the POST-Merger NASDAQ company will be coming from FAMH, not the existing NASDAQ company. So I see the price of the existing NASDAQ company as having very little to do with the Post-merger price.
The valuation of the NASDAQ company PRE-merger vs POST-merger is like night and day.
I am not here to "convince" anyone. And I'm not trying to "hype" something that I don't really believe. That just happens to be my honest opinion.
Best wishes,
Brad |
