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 : TMMI - Total Multimedia -- Ignore unavailable to you. Want to Upgrade?

To: Bruce Hoyt who wrote (12633)	2/23/1999 1:20:00 PM
From: Arnie Doolittle	Read Replies (1) \| Respond to of 19109

"They have a 15 million dollar tax loss carryforward" How about giving us the poop on your source for this info. Assuming you're correct, and that's a BIG assumption, it's MAX value to a buyer would translate to no more than 5 cents a share - IOW $5 million. No buyer would pay full value or else they might as well just pay their taxes as they go. Assuming a 20% DCF rate, and equal usage of the supposed tax loss carryforward over a 3 year period or a 5 year period, the value of the TLCF is between $8 million and $9.8 million in today's dollars. No buyer in his right mind would pay more than 50 cents on the dollar for it. Thus, a fair value of $4 to $5 million which translates into a 4-5 cent stock price. Further, why would a company with that kind of earnings look at a shell company in the first place unless they could get it at a bargain price? Maybe they'd only be willing to pay 25 cents on the dollar, in which case the stock is close to being fairly valued at today's levels. THAT'S ASSUMING A $15 TAX LOSS CARRYFORWARD ACTUALLY EXISTS. MY ADVICE: ASSUME NOTHING WITH TMMI. Arnie