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  • wtblanch5 wtblanch5 Dec 15, 2011 1:53 PM Flag

    well do I hear 85 cents?

    Someone posted on the AXPW concentrator board (where I posted ZBB's development):

    If you look at the ZBB prospectus they give a good illustration of JP's whiskey analogy:

    "Our net tangible book value as of September 30, 2011 was $1,702,891 or $0.05 per share of common stock. Net tangible book value per share represents total tangible assets less total liabilities, divided by the number of shares of common stock outstanding. On a pro forma basis following the issuance and sale of 1,425,000 shares in this offering at the offering price of $0.7101 per share, our net tangible book value as of September 30, 2011 would have been $2,603,833, or $0.08 per share. This represents an immediate increase in net tangible book value of $0.03 per share to existing stockholders and an immediate dilution in net tangible book value of $0.63 per share to purchasers of common stock in this offering"

    (the whiskey reference has to do with JP's analogy w.r.t dilution)

    • wtblanch,
      best of luck.

    • what exactly is the relationship between net tangible assets in a firm heavy in intellectual property to the value of a firm? just askin.

      Lets put it this way. Suppose you write a piece of software allowing you to make ten million a year trading the markets. Now someone buys your company and its software for 30 million dollars. this firm now has about 30 million in intangible assets. Do I understand we should disregard the value of the intangible assets on the balance sheet of the acquiring firm after the purchase to establish the value of the firm?

      Anyway it is time to call it a day.

 
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