Re: optymystic
in response to
by
posted on
Oct 23, 2008 01:20PM
Well that may be the case if the markets trend higher from here on. But ithey could stay where they are for an extended period or even get worse. There could be twice as many bargains going forward
Either way, isn't it better to have the stock available in the bank now?
IMO the important goal is non-relieance on MMP revs. Sorry I must be thick. I do not see the connection between the tax implications and achieving that important goal
If Crossflo has any available loss going forward which can be utilized by PTSC then revenues received will be gross until such time as the loss is exhausted - every $1M revenue will be $1M retained.
Yes that is a possibility. But if that is the scenario, then the current 100 million request others appearing on the horizen is also a possibility. In any case, the cost in terms of dilution is going to be horrific IMHO
For there to be dilution, the value of shares given must be higher than the value of the business received. If the value received is equal to or greater than the shares issued, there is no dilution.
For example, Crossflo may only be valued at $5M then paying $10M would be dilutive. However, if Crossflo is valued at $10M there is no dilution. Further, if the value is $5M but there are $40M carried forward losses available, the payment of the additional $5M would be accretive.
This is why the Crossflo accounts are paramount.
Be well