TMMI - Total Multimedia Message Board

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Microcap & Penny Stocks : TMMI - Total Multimedia

TMMI 0.0114

+50.0%

Dec 31 12:46 PM EST

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To: Bruce Hoyt who wrote (12633)	2/23/1999 1:20:00 PM
From: Arnie Doolittle	Read Replies (1) of 19109

"They have a 15 million dollar tax loss carryforward" How about giving us the poop on your source for this info. Assuming you're correct, and that's a BIG assumption, it's MAX value to a buyer would translate to no more than 5 cents a share - IOW $5 million. No buyer would pay full value or else they might as well just pay their taxes as they go. Assuming a 20% DCF rate, and equal usage of the supposed tax loss carryforward over a 3 year period or a 5 year period, the value of the TLCF is between $8 million and $9.8 million in today's dollars. No buyer in his right mind would pay more than 50 cents on the dollar for it. Thus, a fair value of $4 to $5 million which translates into a 4-5 cent stock price. Further, why would a company with that kind of earnings look at a shell company in the first place unless they could get it at a bargain price? Maybe they'd only be willing to pay 25 cents on the dollar, in which case the stock is close to being fairly valued at today's levels. THAT'S ASSUMING A $15 TAX LOSS CARRYFORWARD ACTUALLY EXISTS. MY ADVICE: ASSUME NOTHING WITH TMMI. Arnie

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