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 : WSII - Waste Systems International -- Ignore unavailable to you. Want to Upgrade?

To: Zoro who wrote (30)	3/2/1999 4:46:00 PM
From: David Furtado	Read Replies (1) \| Respond to of 43

Thanks for the posting. You'd think this news would stimulate a little activity. Any thoughts?

To: Zoro who wrote (30)	3/18/1999 2:50:00 PM
From: Jackson35	Read Replies (1) \| Respond to of 43

Yes, WSII just issued $100mm of seven year senior notes due 2006. The interest rate is 11.5%. Attached to the notes are warrants to purchase 1,500,000 shares of WSII common at $6.25 a share. The 1.5mm shares represent 11.7% of the company, fully diluted, and are detachable. The term of the warrants is five years. This stock is very, very attractively priced because it is "below the radar screen" for most institutional investors. This $100mm offering will change that. Using very conservative multiples for a company this size and to the degree that they are "fully integrated," this company should be -- conservatively -- be doing $25mm in EBITDA by year end 1999. Using a conservative multiple of 10x cash flow, that would yield an enterprise value of $250mm. Back out the $100mm in bonds, convert the converts, and you will have approx. 13 million shares, gives you approximately $11.50 a share. The story gets better in 2000. I know more, but I will leave it at that for now.