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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services

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To: LoneWolf who wrote (7897)3/24/1998 3:02:00 PM
From: dgrs1  Read Replies (1) of 27968
 
The outstanding shares for ATXI is 1,413,913, not 11,307,437. The new company will be based on the pro-forma EPS of .36 per share in 1997. Going forward the company will be based on hopefully greatly improved earnings. A PE of 20 is very reasonable. If based on a 20 PE, the value of the merged stock would be $7.20 or $1.80 with currently owned shares. It makes absolutely no difference who the company is in my opinion. The stock price will be driven by EPS. For example, if the EPS in 1998 were 1.00 per share than the value at a 20 PE would be $20
once these earnings were achived. $20/4 = $5 per share of currently owned shares.
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