<<LOL!!! a buyout by AMZN???? Get real think about what your saying... >>
Actally, I mentioned that idea about 4 weeks ago to an investment banker friend of mine who works for a research boutique in San Francisco.
With AMZN's stock as overvalued currency, easy fit, EGGS installed customer base, etc., if you take out the 2.75 in cash, pay 4.0 times their revenue base...which going forward will certainly grow fast: 6 months revenues = 64Million, and this is trailing, hence understated moving forward, 12 months = 128 Million x 4 = 512 million/24.3M shares = 21 bucks a share, less the 2.75 = buying EGGS for 18.25 net after cash. But if the company waits 9 months and gets their revenue base built up, its certainly conceivable you could see a stock price north of $20...but you gotta let the water boil, and quit lifting the lid...it all depends on your time frame.
If your a banker, that is your job...to find additive acquisition...I'm sure somebody somewhere has called with this idea...or maybe I need to get back in the business...but then I would miss out on all this fun:-)
Another way to look at it is to take that 128Million in revs, divide that into 24.3M shares x $10.25 = $250Min market cap = 1.94 times revs, when you take out the $2.75 in cash
So if AMZN with 50 million shares at 126 = 6.3 billion in market cap for trailing 9 months revenues of 356 million, annualize that for 475Million: 6.3B/475M = 13.25x revs Equates to 5.3 times the valuation
Not hard to figure out how this could be very additive for AMZN...software, SurplusAuction.com, installed base, all the charges have been taken for brick and mortar liquidation.
Calmer heads will prevail and see relative value...just don't know when or if the other guys close the valuation by coming in in price....
BTW the above is quickly on the back of an envelope.
for another comp: EBAY: 39.74 million shares x $116 a share = 4.6billion. last 3 quarters revs = 5.9M + 8.9M + 12.9M = 27.7M, annualized = call it 37M...in revenues for 4.6Billion. As Austin Powers said best: "throw me a fricken bone here!"
ONSL: 18.9 M shares x 23.25 = 439M Market Cap, last 9 months revs: 40.1+50.8+57.8=148.7M, annualized = 198M in revenues, roughly 2.2 times
The above data is from Market Guide on TrackData, and doesn't take margins into consideration.
Do the math.
and as always...bon chance |
