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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: MCsweet who wrote (17386)	7/10/2003 1:38:16 AM
From: Tomato	Read Replies (1) \| Respond to of 78499

I've got a KDUS question. Let's assume that they do what's been advertised and buy a business with their cash (and maybe the SQNM stock). Further assume that what they buy is an average, profitable business. They've got around $2/share in cash and stock. Then there's around 90 cents per share cash loss carryovers and credits. And patents with possible milestone payments and/or royalties. What would a reasonable price be per share after the transaction? If you value on price to book and KDUS used all their cash to buy a business and assumed no debt, and if the average price to book of a microcap company is, say, 1.5, then would KDUS then trade for $3, not counting the tax loss stuff and patents? Could you do a prediction based on p/e ratio? What kind of earnings per year could you buy with $27 million in cash and stock? Thanks.