Awesome Spcl reverse merger into 48 million a yea

Awesome Spcl reverse merger into 48 million a year pixel mags




DD on SPCL – Super Value here.. Courtesy of HokieHead

With the pending reverse merger and splits involved I decided to analyze the change in share structure, give details on the share structure and most importantly come up with a valuation of the current shares.

My valuation on the current shares places the shares at a target of $0.0022 (worse case) to $0.0263 (best case), that’s a 633% to 8,667% gain. Below I will show how I came to these figures. Say I’m crazy but this reverse merger (look at the merger, not the split!) is a mother lode.

Let’s look at the share structures first:

Current:
Authorized: 2.17 Billion
Commons: 2.16 Billion
Preferred: 10 Million

Outstanding: 1.83 Billion
Current PPS: $0.0003
Current Market Cap: $549,000

After Merger/Splits:
Authorized (1/10): 217 Million
Commons (less preferred): 207 Million
Preferred (no change): 10 Million

Outstanding (1/100): 18.3 Million
Post-Merger/Split PPS (1/100): $0.03
Post-Merger/Split Market Cap: $549,000

Until we see the financials on the new company, from the DD I’ve done, PixelMags revenues are in the $48 million range and growing. These 3 sites confirm it:

http://listings.findthecompany.com/l/18058157...Angeles-CA

http://www.zoominfo.com/c/PixelMags-Inc/353841771

http://www.buzzfile.com/business/Pixelmags,-Inc-310-598-7303

I kept the valuation of the incoming company to a 1x sales valuation for simplicity. Price to Sales ratios in the Software & Programming industry average anywhere from 4-9x sales so I’m low balling this as well.

http://csimarket.com/Industry/industry_valuat...p;ind=1011

Best Case:
Putting a $48 million market cap (1x sales) on the post-merger company with the post-split outstanding of 18.3 million shares, that would place the PPS at $2.63 ($48m/18.3m os), or $0.0263 pre-merger/split, that’s 87x higher than the current PPS.

Worse Case:
Putting a $48 million market cap (1x sales) on the post-merger company with the post-split shares maxed out at the 217 million authorized shares (maxed out but I don’t see this happening), that would place the PPS at $0.22 ($48m/217m as), or $0.0022 pre-merger/split, or 7x higher than the current PPS.

Conclusion:
Let’s wait the see the filings, etc. but currently SPCL is 7-88x undervalued at this level imo. Those that are only looking at the reverse split and saying this is a bad thing are caught in the penny scam mindset that all reverse splits are bad. Look at the incoming value of the merger! The current SPCL shareholders will own just over 8% of the incoming company. This will be a company with $50 million in revenues and growing, 217 million shares authorized, 18 million shares outstanding and only a $550,000 market cap. Even if you maxed out the shares to the authorized post-split (won’t happen) you have only a $6.5 million market cap. That’s trading at .13x sales, cheap!

This imo is like getting in on a big technology IPO at inside ownership levels. Do some DD on PixelMags; this would be a hot hot play if they were coming public through the more expensive IPO route. The reverse merger route is cheaper and better for everyone involved. I would rather own 8% of PixelMags, a possible hot tech play (FB, GOOG, etc.) that will most likely up list to a major exchange and garner a market cap in the $100’s of millions than 100% of SPCL, or basically nothing.

Anyone remember TTC*, announced a merger with a software company and with close to 3 billion in outstanding shares ran from $0.0004 to $0.037 in a few months. $1,000 invested there at $0.0004 went to $92,500 at $0.037.

http://stockcharts.com/h-sc/ui?s=TTCM&p=D...8775116615

That company did not already have close to $50 million in revenues like PixelMags has, had a bigger share structure and still ran almost a 100 times higher. SPCL will be bigger. If you own and have shares at this level congrats, I think big things coming here in the next few weeks and months. Don’t let anyone try and talk you out of your shares.