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Microcap & Penny Stocks : STRATEGIC SOLUT (Nasdaq:SSGI) -- Ignore unavailable to you. Want to Upgrade?

To: ComSolut who wrote (34)	8/4/1998 2:23:00 PM
From: ComSolut	Respond to of 388

GUESSWORK from trevor1960 Yahoo Board - An attempt at valuation with what is essentially an IPO. I believe this is what Dunonathn would call a reverse merger in which the previous shareholders of SSGI now become the minority shareholder of SSGI which is a combined company of 1/8 SSGI and 7/8 a yet to be named private company (Ratio based approx. on revenues). The merged company will have revenues of approx. 40 million. We know that the shares outstanding will grow - "the company" stockholders will receive stock at some ratio that will give those stockholders a majority. Lets assume 2/3rds. Currently approx. 2 million shares are outstanding so 4 million will be issued (hypothetically) giving a total of 6 million shares. Net Profits are the big question. Lets assume a range (EVEN ASSUMING PROFITS MAY BE RISKY): 5% 2 million 10% 4 million 15% 6 million EPS at 6 million shares: 2 million equals .33/share 4 million equals .66/share 6 million equals 1.00/share To extrapolate a share price we need a PE ratio. Researching similar companies in the same industry yielded PE's from 12 to 32. .33/share .66/share 1.00/share PE 12 3.96 7.92 12.00 PE 18 5.94 11.88 18.00 PE 24 7.92 15.84 24.00 PE 32 10.56 21.12 32.00 IN SUMMARY: What assumptions were used - 1) Revenues of 40 million per press release fairly safe 2) That there will be profits purely hypothetical 3) Number of shares issues purely hypothetical 4) PE ratio from like companies Comments welcome!

To: ComSolut who wrote (34)	8/4/1998 7:52:00 PM
From: BlueCheap	Read Replies (3) \| Respond to of 388

Well the LEAKS are dripping on ME. I understand that the "NEW COMPANY" is a LONG TIME Profitable company. That these shares issued by SSGI to the "NEW COMPANY" will NOT be in public float...SSGI will STILL only have a 1.5 Million Float, Which adds a whole new twist to this. Folks THIS is getting VERY INTERESTING. I originally bought SSGI with intentions of just a nice 30 to 50% profit, I now "think" I see more a LOT MORE. As with any speculation, it is just that and you must believe it when you see it.. OH!! I ALMOST forgot, (not really) We may SEE an announcement an ANNOUNCEMENT by the end of this week or early next week...I hear the DEAL is done, Of course I don't know that to be fact.. Regards, Malcolm