USAI/TMCS relationship may be played out - another consideration - BANY
If you're looking for the next backdoor to a hot internet IPO (isn't everybody), you may want to check this out:
I played TSQD's 19% ownership of the DRIV IPO in August. The important thing is to get in well before everyone else. Another internet IPO relationship to consider is BANY/Anything Internet. I got in at $.51 a few days ago, but there appears to be alot of running room ahead.
These were my first impressions on the similarities/differences between TSQD/DRIV and BANY/Anything Internet IPO:
I spent an hour or so reading over the recent BANY PRs, and I found that it has alot in common w/ TSQD/MALL/USAI (as a backdoor to an internet IPO), and some differences, both good and bad:
BANY bought 33% of the 3,000,000 Anything Internet shares expected to be available in an IPO in the next couple weeks (final papers to be submitted to NASD early next week, should allow IPO to go within a couple weeks after that). BANY obtained the shares through a creative stock swap, unlike TSQD which had inside connections with DRIV. BANY does have a working relationship with AI, who sells BANY's product (Double Shell computer cases) on the internet. AI will be a BB:OTC IPO, which means it will simply begin trading at a MM established price, the only share owners are insiders and BANY dividend holders.
BANY business is less flashy than AI (like TSQD), but appears to be turning around, expects to have a great 4Q. Recent deal to sell cases for Dell portables and to sell over Ingram Micro (heavy hitter) seem legit. They are in the process of filing all their SEC statements and making audit records for last two years available. Genuinely seem interested in growing, not just hyping. Apparently they fell victim to an illegal short selling operation awhile back that ran their price down. They won a recent court case related to that matter which may be providing additional momentum right now.
BANY has 9,173,199 shares, and they will give 200,000 of their AI shares as a dividend to shareholders on record Nov. 3, ~1 share AI for every 45 shares of BANY - delivered on Dec. 7 (sorry we missed that one). Some who will receive the dividend are already talking about selling their shares prior to the IPO (mostly tongue-in-cheek).
The remaining 800,000 shares will stay with BANY. BANY folks are saying their business has a value of $.50, but that is hard to prove. It has traded as low as $.15, and as everyone who follows TSQD knows, when a BB stock is being traded based on another stocks IPO, that IS its whole value. So, the 800K shares distributed over 9M BANY shares is a ratio of 0.0872 to the price AI trades at. TSQD has traded at about half the expected ratio (or less) as a risk-based discount factor, but we'll let BANY determine this on its own.
The only thing I've seen on AI revenue is that they are making ~$300,000 per month. If you conservatively say they'll do that next year, with a modest growth factor, they could earn between $3.6M to perhaps $5 million (pure guess). Stocks similar to AI are assumed to be trading at ~12X next years earnings, so AI may price out as high as $14.40, but could start out at about half that ($7.2).
BANY is presently .74 X .82
So, BANY could be (.0872*7.2)= $0.63 if the IPO goes flat, or $1.25 if things go as expected (which is an understatement). I kinda get the feeling people are beginning to jump on right now because AI has gotten good PR, and they expect it to take off like other internet IPOs. They story is a good one, lots of people getting interested, but if BANY gets above $1.5, I (personally) would equate that to TSQD = $7 - time to sell!
Will any credible media sources pick BANY/AI up? If they do, with this small float, something explosive could happen. BANY has a huge risk/reward factor! Big rewards, big losses, in a heart beat. If TSQD/MALL/USAI weren't enough for you, you may want to check this one out.
Apparently BANY has a long time loyal following who has toured the company in Colorado Springs, and interacts almost daily with the management and IR/PR guy (Sitra?). I expect some good analysis and valuating of AI over the next few weeks, check it out. |
