sloanrunner: "Comments like "CFE sold 75% of Mayoko for 47m" and "CFE sold it for 47m. About 75m gone in a flash" are very misleading IMO. CFE got $47M cash and 120,000,000 shares now worth 42c each so the deal is currently worth $97.4M to CFE. That's $50M more than you are implying."
Sorry sloanrunner but I have to politely disagree. Your quote of "CFE sold it for 47m" is taken out of context as if you check the original post Peter111 was quite clearly referring once again to the 75%, not the full amount. He didn't factor in the $50M because he was only referring to the 75% sold. IMHO, while I've stated how beneficial this deal is to CFE, in hindsight he's probably right in saying CFE could have received more for it. I don't know why we didn't just do the IPO ourselves.
The only flaw in Peter111's math I can see is, as PVF stated, he omitted the royalty from his calculations.
For what it's worth Peter111, IMHO this does back up your argument and perhaps things could have been done differently for a more beneficial outcome.
In saying that, thank goodness CFE's business model changed and we're still leveraged into it in a major way with 25%. Also, even if CFE did sell it "cheaply", it's still a hell of a lot more than CFE paid for it, so I can see both sides. I still don't think the rise in SP to date was a fair reflection of CFE's gain from the deal however, but that seems to be the case with this stock. Hopefully this will change imminently.
Anyway, like I've said frequently, while my math and logic are sufficient, I'm not very knowledgable in this field, these are the opinions of someone uninformed.
Add to My Watchlist
What is My Watchlist?
