SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks : ETPI-Military Entertainment Enters Civilian Market
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Safe Cents who wrote (3864)3/4/1999 2:21:00 PM
From: SCOOBEY-DO  Read Replies (1) of 4767
 
Hi Marcus,
Regarding you comment:
<<Question, if the size of the company doubles, would one expect the stock price to do likewise?>>
I don't think that an acquisition that would double the size of the company will double the stock price for one of two reasons.
1) If the acquisition was a merger, the other company most likely had approximately the same number of shares outstanding, which would now be ETPI shares outstanding. Twice as many assets and twice as many shares outstanding, or:
2) If the acquisition was a purchase, fixed assets and inventory would go up while cash to purchase the company would go down. In other words, the assets would not increase, only change in type. Also, if the acquisition was made with cash and the purchased assets were not valued at the full amount of the cash given, the difference would go into goodwill.
Just my thoughts.
Scoobey
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News