ASCT - Buyout Rumor Message Board

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Microcap & Penny Stocks : ASCT - Buyout Rumor

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To: Buendia who wrote (59)	2/16/1999 9:34:00 PM
From: Cookie Monster	Read Replies (2) of 73

Value of ASCT.....opinions and feedback encouraged.... This is how we can arrive at the valuation..... The offer states that the buyout will be for a the greater of 140 million or 12.2 X gross earnings..... So, if we assume a 6.98 million share structure, and we discount 140 million to today's value (let's use a conservative 50% discount), that still values us at a minimum of $10 per share plus the blue sky potential of the 12.2X earnings offer, which would put us in around the $12 range per share. As the takeover nears, and revenues for ASCT grow....the price solidifies and will either settle at $20 per share US (in the year 2002) or be much higher if product sales are huge! So using a not so conservative valuation of that 140 million dollars, we can justify a stock price today of $15+ once the blue sky potential of this deal is factored in. Comments on my little mathmatical excercise :) Later, CM

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