Total sales of security is $184K - are these renewal or new sales? If they are renewal, CRAP! Total connectivity sales is $3.179M - renewal or new? Renewal means less for the bottom line. Once again CRAP!
I would love to see the metric of New Business vs Renewal vs Lost Business - this is the telling metric that has never been published. If it was I think it would scare the market.
My estimate is that the $3.179M of connectivity is providing no more than 5-10% income at best. So this translates to $318K at best in the bank.
With Asta, why the hell would the sellers agree to take $1M in cash and balance in shares that are now worth 40% less? Its like saying I'll buy your house at $3M but if the market tanks over the settlement period I am only going to pay you the depressed price. Bill and other owners are not that dumb! Im sure they are saying they want a bigger chunk of cash or a better deal for the share offer at a lower price. The whole idea of this is to make money, at this rate the deal is worth at least $1.2M less than originally thought by Asta. I know I would be pulling out if I had a chance. Think about it, Asta is making over $1M in profit, over the next 3 years they have the purchase price in profits and they still own the company! Sure Asta can go backwards but so can the share price once its under the Tesserent banner. To top it all off they will cry poor over the expense of the failed merger buy out call it whatever you want.
Tesserent needs cash, Asta profits would give it the cash, Asta wont sell if share price is screwed. Therefore we are screwed!
TNT Price at posting:
5.3¢ Sentiment: None Disclosure: Held