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Microcap & Penny Stocks : PCES - paid $4.75 Million by 3M Corp!!! -- Ignore unavailable to you. Want to Upgrade?

To: chalu2 who wrote (61)	3/6/1999 10:01:00 PM
From: Soccrates	Respond to of 523

I want to thank you too. Let the facts decide this one. Did I miss the link?

To: chalu2 who wrote (61)	3/7/1999 4:47:00 PM
From: Zeev Hed	Respond to of 523

chalu2, earlier in this thread's life I provided a good estimate of the value to an acquirer of the tax loss carry forward. Assuming all of it is indeed transferable (and the two merging entities must be in "essentially" the same business), then you take 35% of the carry forward losses (about $20 MM or so) and get $7 MM. But, you can bet your bottom dollar that the preferred will want out and at a premium, and since all such transactions must bear the stamp of the preferred, I would not be surprised if only $5 MM of the carryforward value accrue to the commons. Now, you must also take the side of the negotiating party on the other side. They will take a risk that the IRS will not accept the transfer of carry forward losses, and while if it is fully transferable it is worth $7 MM to an acquirer, he surely is going to demand a massive premium for the risk. Guess what, I would not be surprised if less than $2 MM actually accrue to the commons by the the time everything is said and done (and even less if management get themselves "golden parachutes"). Thus, in my opinion, the best case scenario is $.5/share. The worst case scenario is of course absolute loss. Zeev