I have to correct your math, Dave. You said:
SO HOW DO YOU VALUE THIS COMPANY?
Just like CMGI, one way is to figure out what the value is from what they own of the companies they bring public.
If SolutionNet is valued at $7.00 and they retain 40% then that one company has a value of $2.80 to SHAL shareholders.
This is true ONLY if the same number of shares are issued for SolutinNet as there are shares in SHAL. Think in terms of market value. If there are half the number of shares issued in SolNet, then the market cap value is obviously cut in half. SHAL's 40% is worth only half and each shareholders portion is valued only at half per share ($1.40/share). Similarly, if there are twice as many shares of SolNet as there are in SHAL, each shareholders portion would become worth $5.60.
So, Dave, we don't have the critical information, the ratio of the number of SolNet shares to SHAL shares. The same problem affects the value computation for companies A, B, C, And D that you refer to later in your posting.
The resultant conclusion is that without further data we just can't know at this time how to value SHAL. |
