$SNDN Quick DD & why multipennies a possibiliti
Post# of 29735
Posted On: 11/23/2012 12:43:21 PM
$SNDN
Quick DD & why multipennies a possibilities imo..
I believe that SNSN is same as currently operating profitable company Acquirgy. Someone poasted earlier showing addresses of both companies match. I went through details of the chapter 11 filing and seems like the original creditors were compensated and paid off with a discounted cash amount by a new company that consisted of Paul and other management team along with the two firms who financed the team to pay off the original creditors. Paul and other management team owned a chunk of shares and they retained their shares even after chapter 11 reorganization so essentially they paid off original creditors to took over the company and ran the business as usual. The stock was never touched in the process or got reissued so original owners still retained their stocks. Of course the stock fell hard after chapter 11 reorganization due to lack of info from company on the current operations but the company I believe is running stronger than ever especially since the debts are all eliminated now and they have been adding new clients and big clients since then (look into their website for their impressive client list)
Read the link below. A stock after chapter 11 not always lost its value and in cases can get back to its original level or even better in some cases especially if their debts are all cleared
www.investopedia.com/ask/answers/10/stock-holder-lose-equity-chapter-11.asp#axzz2CRAT17tY
"Usually, little to nothing is leftover for shareholders after the more senior creditors are paid. However, if the company restructures and emerges from Chapter 11 as an improved organization, its share price may rise to higher levels than previously witnessed
Read more: http://www.investopedia.com/ask/answers/10/st...2CRBUq5tG"
Paul and other management team just took the company through chapter 11 just to clear the debts off the books. They owned a major chunk of shares before chapter 11 (look at the link at bottom) and I believe they still do own those shares and thereby reason for why the stock always continued to trade in the pinksheets. Only reason why the pps never took off after chapter 11 is due to lack of info. from company on the operational details of acquirgy but if we find those details we can get an idea on how much the fair value of the stock is.. all imo
www.bizjournals.com/tampabay/stories/2009/08/03/daily56.html
Now let's see some potential valuation on this..
Company made $0.05 profit per share prior to chapter 11 when they had all the debts (read last paragraph from the link below) Now that debts are all cleared, their profit level should be way higher than that since all the money they were paying towards debt is no longer there. So, at 0.05 profit per share and based on a conservative PE ratio of 5, their pps valuation should have been around $0.25 per share prior to chapter 11 and yes indeed the pps was around 0.40 at that time. Now with potential higher profits with all the debts are gone, the profit share should be much higher than 0.05 say around 0.10 to be conservative w/o debts then based on a conservative PE ratio of 5 the pps should be atleast at 0.50+. Any higher PE ratio would make pps anywhere in dollarland
I think it is just matter of time before pps gets back to the true fair value and it will soon since the stock just woke up. A/S staying at 100M also is a big plus
www.bizjournals.com/tampabay/stories/2009/08/03/daily56.html
From link above:
"In the nine months leading up to the 2008 third quarter, SendTec chalked up a profit of $3.5 million, or 5 cents per share, compared to a $13.5 million, or 25 cents per share, loss the year prior despite revenue dropping from $24.5 million to $16.3 million"
Quick DD & why multipennies a possibilities imo..
I believe that SNSN is same as currently operating profitable company Acquirgy. Someone poasted earlier showing addresses of both companies match. I went through details of the chapter 11 filing and seems like the original creditors were compensated and paid off with a discounted cash amount by a new company that consisted of Paul and other management team along with the two firms who financed the team to pay off the original creditors. Paul and other management team owned a chunk of shares and they retained their shares even after chapter 11 reorganization so essentially they paid off original creditors to took over the company and ran the business as usual. The stock was never touched in the process or got reissued so original owners still retained their stocks. Of course the stock fell hard after chapter 11 reorganization due to lack of info from company on the current operations but the company I believe is running stronger than ever especially since the debts are all eliminated now and they have been adding new clients and big clients since then (look into their website for their impressive client list)
Read the link below. A stock after chapter 11 not always lost its value and in cases can get back to its original level or even better in some cases especially if their debts are all cleared
www.investopedia.com/ask/answers/10/stock-holder-lose-equity-chapter-11.asp#axzz2CRAT17tY
"Usually, little to nothing is leftover for shareholders after the more senior creditors are paid. However, if the company restructures and emerges from Chapter 11 as an improved organization, its share price may rise to higher levels than previously witnessed
Read more: http://www.investopedia.com/ask/answers/10/st...2CRBUq5tG"
Paul and other management team just took the company through chapter 11 just to clear the debts off the books. They owned a major chunk of shares before chapter 11 (look at the link at bottom) and I believe they still do own those shares and thereby reason for why the stock always continued to trade in the pinksheets. Only reason why the pps never took off after chapter 11 is due to lack of info. from company on the operational details of acquirgy but if we find those details we can get an idea on how much the fair value of the stock is.. all imo
www.bizjournals.com/tampabay/stories/2009/08/03/daily56.html
Now let's see some potential valuation on this..
Company made $0.05 profit per share prior to chapter 11 when they had all the debts (read last paragraph from the link below) Now that debts are all cleared, their profit level should be way higher than that since all the money they were paying towards debt is no longer there. So, at 0.05 profit per share and based on a conservative PE ratio of 5, their pps valuation should have been around $0.25 per share prior to chapter 11 and yes indeed the pps was around 0.40 at that time. Now with potential higher profits with all the debts are gone, the profit share should be much higher than 0.05 say around 0.10 to be conservative w/o debts then based on a conservative PE ratio of 5 the pps should be atleast at 0.50+. Any higher PE ratio would make pps anywhere in dollarland
I think it is just matter of time before pps gets back to the true fair value and it will soon since the stock just woke up. A/S staying at 100M also is a big plus
www.bizjournals.com/tampabay/stories/2009/08/03/daily56.html
From link above:
"In the nine months leading up to the 2008 third quarter, SendTec chalked up a profit of $3.5 million, or 5 cents per share, compared to a $13.5 million, or 25 cents per share, loss the year prior despite revenue dropping from $24.5 million to $16.3 million"
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