Reference no: EM13725162
Need assistance identifying summary of errors in the "substance" of the PPMC Report.
Purchase Point Media Corporation (Pink Sheets: PPMC) is what some refer to as a thinly traded "corporate shell." The firm held patents in the United States, Canada, United Kingdom, and Germany for a shopping-cart display device, but was a nonreporting and nonoperating entity.
On March 18, 2002, PPMC reported its intention to sell these patents and related trademarks. The initial estimates suggested a stock price of nearly $2.50 per share, before related per-share deductions for sale-related broker's commissions and legal fees. At the time of the news release, the firm's stock was trading at $0.04 per share. In less than 60 days the stock was trading at more than $0.60 per share (Cataldo 2003, 55-60), for a 1,400 percent increase in price per share. (Note that investors and speculators alike would view this as a very risky investment, and the price per share for PPMC stock would be expected to fall short of or sell at a significant discount to the "anticipated" selling price for the firm's intangible assets. See Arbel and Strebel 1982 and 1983; Arbel, Carvell and Strebel 1983; and Arbel 1985 for guidance on thinly traded or "neglected" firms.)
While this initial news release attracted speculators, causing the stock price to rise, after months without any additional news releases, the stock price drifted down again. On August 20, 2003, PPMC again announced its intention to sell the firm's intangible assets (Business Wire 2003).
In the second announcement, PPMC management referred interested investors to their corporate Web site. Among the data provided, PPMC included a financial projection and other items they felt might be of interest to potential purchasers of the firm's intangible assets (see Exhibit 1, Purchase Point Media Corp. statement, which follows).
To begin this case, review and comment on the "form" of the public disclosure circulated by PPMC. Then use the "substance" of this information to develop per-unit, salesbased contribution margins and break-even points for the first year of operations. Last, gather other publicly available information to determine the market feasibility of achieving its break-even point.
|
Compare and contrast the three different vendors
: Identify three potential vendors. Compare and contrast the three different vendors. Be sure to consider the services, data solutions, and security features they provide.
|
|
Problems of hacking
: Question 1: Describe what hacking of memory or hacking of RAM means. Question 2: Examine the common tools that hackers use to hack into memory of computing devices. Detail two (2) real-life examples of such tools in action.
|
|
Describe your selected educational psychologist
: Describe your selected educational psychologist including a brief biography of where and when he was born, his educational career, and the theory for which he is known.
|
|
What is the real required rate of return for cirrus radio
: Cirrus Radio is a multi-format, group radio station owner with operations in the top 100 US markets. The company is traded on the NASDAQ stock exchange. Donna Pringle has estimated the normalized FCFE for Cirrus Radio to be $5.25 per share for the ye..
|
|
Need assistance identifying summary of errors of ppmc report
: Need assistance identifying summary of errors in the "substance" of the PPMC Report.
|
|
Assume debt tax shields have a net value
: Digital Organics (DO) has the opportunity to invest $0.98 million now (t = 0) and expects after-tax returns of $580,000 in t = 1 and $680,000 in t = 2. The project will last for two years only. The appropriate cost of capital is 14% with all-equity f..
|
|
Explain six basic steps to decision making
: Six Basic Steps to Decision Making. For this assignment you will have the option to choose between three activities, please choose ONE of the follow and submit to the dropbox.
|
|
What is the value of this stock at the beginning
: What is the value of this stock at the beginning of 2013 when the required return is 14.5 percent? (Round the growth rate, g, to 4 decimal places. Round your final answer to 2 decimal places.)
|
|
Restrictions for registering horse
: You might also want to include things the registry offers its members, guidelines/restrictions for registering horse with it. I want to be able to read your assignment and have confidence that you know everything of this breed of horse that you co..
|