Just thought I would throw out some of my musings
Post# of 7290
Three things have really struck me recently in the blogs: 1. We're told that the 57.5% for HHSE s/h in the merger exchange will be larger; 2. There will be investment by some of the entities in China; 3. The new entity would like to be traded on NASDAQ. So how might that play out?
The current market cap of CRIM is $39.76mm and that of HHSE is $24.00mm (and there was virtually now trading today, July 3) and so I equate those as being nonsense numbers because of the non-trading of CRIM. But, if I assume those are real numbers, then it might be possible to value the combined MCap at about $64mm and the HHSE s/h are assigned say 60% (vs 57.5%) and so our shares now have a value of about .05 per share. Big jump if it doesn't get walked down.
So then, if the China entities look to the long term (and they usually do), they might be willing to invest and raise the price of the stock for strategic reasons. And that price could be to any level, but let's say they took it to $.25 per share. Now, that makes for some interesting options.
Since a NASDAQ listing usually requires a stock to be trading in the $4.00 per share range (Yes, I know that there are exceptions which I'll disregard for now), how do you raise a two-bit stock to four bucks. Wellllll, how about a reverse split of 1 for 20 - this raises the per share price to $5.00 per share. Now RSs are usually bad, bad, bad. But in this case, and again, for strategic reasons it might be just the thing to get the snowball rolling downhill, gathering speed and increasing in size.
Don't know about y'all, but I could sure live with 5% of my shares being valued at $5 per. As I said at the beginning, these are just my musings. It will be interesting to see reality.
Finally, you might want start reading "VARIETY". It tells alot about what is happening in Hollywood. Among other things there is a lot of talk about Chinese companies showing a great deal of interest in American studios and the sense I get is that a lot of the studios managements are getting tired (just look at how few new franchise flicks are being produced and those that are are based on comic books, cartoons and even video games) and looking for a way to fund their life style with even less of a work ethic. Oh well, as has been said before, time wil tell. Always does.