chuc: I thought I responded to the issue of 70% or 80%, it does not matter that much. If they have the 3.5 MM on hand by April or a little more by October 1998, they have 80%, are we all agreed on that? This, of course assumes that the new deal they negotiate with Phoenix does not clip any of that. I have no idea what these negotiations will result in, but as I said before, Phoenix will want something in exchange for an extension of the time table. When we find out the size of the pound of flesh Phoenix extracted, we will need to redo the valuation model.
As for valuation, I prepared three models, and posted to Howard Sinclair, they are crystal clear, they assume three levels of costs, the $25/ton that CLL believes is feasible, a medium cost of $50/ton and the $75/ton which I think, until proven otherwise, is a rational number. The "fair valuation" of the stock at these levels was 36, 20 and about 4.7 $/share respectively.
Is there any argument on these numbers, or are we going to dwell on the 70/80% issue. By the way, someone posted 90% ownership, and I am not sure, yet if I erred or not, no one came forward with the backing on that number. In any event Chuck, I still think that those $500 and $800 per share you are so fond of throwing on this board are ridiculous, even if we take CL's cost assumptions.
Zeev |
