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 : HouseHoldDirect.com (BYIT)-The Next SAMS/Walmart Ecommerce
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Andrew H who wrote (2456)5/28/1999 10:34:00 AM
From: greg Benfield  Read Replies (3) of 2994
 
For your sake I hope it did not cost them any shares at all. This company would be much better using debt to pay for this acquisition. The reason I am saying this is because if this company is as undervalued as you think it is then why use it as currency when it is depressed. If RDIM used their stock and we assume that book value is equal to one years sales. Let us say they bought this company for about $18 million or 36 million shares. That means the the shares outstanding would more than triple. With Debt financing, the interest and the payments would cut into the bottom line for a while but in the end you manage to keep the # shares low and in 5 yrs it is better for the owners.

My question is why is RDIM over extending themselves. They are making a lot of acquisitions with very little capital on hand. This means they are taking on a lot of debt or creating major dilution. Why doesn't the company just sign deals or alliances with Thunderstick and American Home Products.. You must assume that the company gave the owners of these other two companies favorable terms and therefore there is over 35 million shares of people who might just want to cash out. They are probably averaged in lower than the current selling price. What I am saying is that basically while the company is growing your piece is becoming infinitescimal. You probably are not making aything out of any of these deals.
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