Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : INFE ... Infocall another Sleeper -- Ignore unavailable to you. Want to Upgrade?

To: drivaldog who wrote (1775)	6/1/1998 8:19:00 AM
From: dwlima	Read Replies (1) \| Respond to of 10343

i would assume that any half-way intelligent owner of a company about to issue stock in exchange for something would need to know what the value of the stock is. To do this, he would bring in a firm to conduct a corporate valuation and provide him with a value and share price. if this share price was in-line with the market value, there would be no issues. if it was not, we would have some problems. This is why we see acquiring companies offer many more dollars than the current stock price or market value of a company. This is because the acquirer has done the valuation and came up with a higher share price (could be because of different projections or synergies with existing business units). in our case, i cannot predict a share price to be used for the valuation without audited financials. what i can say is that i doubt the company would have ever sold their shares at 20-cents if they even has the slightest inkling that they would be landing multi-million dollar contracts. hope that helps. david