Bobo;
<At $25 / share, it would cost an acquiring company $600 mm for SRCM. $300 mm in common stock + $25mm from 1mm options that are outstanding but not included in current share count since they would be dilutive to eps + $175mm from the 7mm shares from outstanding warrants that are not currently included in the share count for the same reason + $100mm in debt.>
I believe you are almost right. I'm not sure about the options but the warrents are wrong. Each warrent only buys 1/2 share and I'm not sure of the warrent count but I thought there were less than that. I thought it was closer to 4,500,000 which in turn would yield 2,225,000 shares which will be exercised at $11.
Therefore, I would put a value at 25/share at $415,000,000 as follows: $300mm common stock, $25mm options, $55.625mm for warrents[2,225,000 x $25],$100,000,000 debt, LESS $20,000,000 cash,& $20,000,000 held in escrow for future interest payments, &$25,000,000 received by the warrent conversion.
IMO CHEAP[ if patents and technology are for real...I think they are]
Co. believes patents alone to be worth over 1 billion. If a buyout I have no trouble envisioning twice this price if not more.
Regards;
MW |
