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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: TokyoMex who wrote (54473)	2/10/1999 8:04:00 PM
From: KZAP	Read Replies (1) \| Respond to of 119973

SE, TECD, AMMB? Where do we find these low pe's? Bloomberg? Regards, KZAP

To: TokyoMex who wrote (54473)	2/11/1999 8:07:00 AM
From: Gator	Read Replies (1) \| Respond to of 119973

MOKA (Nasdaq: $2) is worth around $3.25 based on current DDRX prices. One thing I'm not sure about is the cap on the deal. The 8K recently filed states the the acquisition agreement is worth $35 million, based on a $6 DDRX price. If DDRX exceeds $6, does that mean additional money to MOKA shareholders, or do they scale back cash or shares of DDRX to keep the price at $35 million? I hope to have an answer for that today. The big question is, why is it selling for $2? Even if DDRX went to 0, the cash portion of the deal is worth about $2.32. A few factors may be contributing: Some people are in this stock near the $1 range. They've got their double and they're happy with it, so they are selling into the buying. Completion of the deal isn't until early Summer. Some people haven't done the math. Associated Press screwed up and reported the value of the deal at $25 million instead of $35 million: marketwatch.newsalert.com So far, all they have is a letter of intent. Both parties still have to conduct their due-diligence to come up with a Definitive Agreement. According to their 8K8 just filed, this will be completed by March 5. freeedgar.com Note that this deal doesn't necessarily prevent someone else from stepping in with another offer. This is a very unique opportunity. Even if the deal fell thru, we have a profitable company with a book value over $4. Very limited downside from this point, with a very realistic 60% return on investment if you get in at $2. Gator