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To: Devil's Advocate who wrote (10070)6/9/1998 9:11:00 AM
From: Mr. Forthright  Read Replies (4) | Respond to of 11850
 
<<Now, suppose that the company pays the new land in cash. Then, we have a company that is worth a lot more with the same amount of outstanding share>>

You are wrong. If you buy something that is worth $1.00 for $1.00 in cash the value of the company hasn't changed.



To: Devil's Advocate who wrote (10070)6/9/1998 9:15:00 AM
From: Mr. Forthright  Read Replies (2) | Respond to of 11850
 
<<It is worth $2.85 per share>>

Says who?

Could you please explain to me why anybody would sell an asset worth $200 million for restricted share worth $40,5 million at the time of the sale? 50 million shares issued when the stock was $0.81 equals $40,5 million. Why not receive the claimed value of the assets? The funny thing though is that the company turns around and claims the asset per share number is $2.85. I don't get it, one day the sellers receive $40,5 million for the assets and the next they publicly claim they are worth more than $200 million. I am confused.