from StockHouseMel if I do an approximate calculation of the...

from StockHouse

Mel if I do an approximate calculation of the total number of shares on issue after IMX has been purchased Ive lost track a little of minute detail as mine are tucked in the draw--the truth. (I'm not making that statement in the smarty pants sense) around 660 million shares Theo has paid 10 million to the the owner of IMX that PWR partly own the company announcement section states that it will subject to performance criteria be a total payment of shares and scrip of be between 20 and 25mill-- I think for the IMX business is extremely valuable and we had Geoffo posting on the thread--he might short it but even though I have no association and do not know Geoffo--I have read his posts and I know he just loves American Express--so he would regard it as valuable--even though he may have shorted (the market is the market--don't fight the market) (go with it) anyway Commonwealth Securities are stating that it is PWR's aim to possibly pay a 2 and a half cent dividend---if you worked that out--and multiplied 660 odd million by 2 and a half cents--you would get almost exactly what PWR owes IMX--the former owner of IMX would ofcourse under this formula receive shares in PWR so he would then get paid the dividend--some of it approximately a third would go to Careerpath--so under that scenario they would receive 5 million the other 70% of shareholders would receive the remainder being approximately 10 million--the conversion price as you know is 7.85c--in order for the IMX owner actually to get a full ten million worth of shares at 7.85--PWR would need to give him roughly 320 million shares that each paid a dividend of 2.5c (equals 8 mill)--so therefore any number of mixes to the equation could be worked out--for the former owner would also receive a capital gain on his shares--for by issuing more it gets a higher investable weight factor in March--so therefore Theo could say to him--you shouldn't get so many for they will rise in value and you will get it through the gain--so these are just rough thoughts I'm jotting down---the IMX owner ofcourse would get the gain for by issuing a dividend sure it increases the IWF additional to that though you also make PWR undervalued for at present prices to pay a dividend of 2.5c---this is almost a 50% future dividend yield at today's prices---making even a 20 or 30 or 40 or 50c valuation perfectly achievable under this measure---further if the investable weight factor is increased then the institutions will take shares off the market rather than selling them and thus make the remaining scrip more valuable.
Two and a half cents ofcourse would not be payable in one go---it may take one year to achieve--I know at least one business divested by PWR has a performance criteria attached to it which states the divested business must demonstrate to the new owners--a return (I think it is by March also) (it is back a bit on the thread) if it does so after I guess being audited PWR then receive more money---Clarity has fullfilled all of it's contracts and more and the company has something like 50 million (that was the last announcement) in existing or nearly signed forward contracts so it is a gradual thing with a 2003 view in a bearish sector--software like ERG and EGI and Ebet and CAT---IMX would have done all the euro coversion work--that Intellect would have also done that won't be fully reflected till next time the respective company's report--the business plan is working--the other one Zento--it states in the company announcement section that after years of expensing (bit of humour there) it is now looking good.
Anyway the above are some roughies to throw into the melting pot of ideas--it is not precise just some thoughts on a Sunday arvo.