OMEX

[David Randolph]

OMEX on May 18th:

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Hey David... I don't post anything too often, but check out OMR - it's ship wreck finding company that found a huge loot... 500,000 million dollars worth.

It seems like huge news LSUJay. But how do you know it is worth $500 M?

• Odyssey's Latest Shipwreck Find Yields over 500,000 Silver and Gold Coins
Business Wire (Fri 9:15am)

I couldn't justify the valuation before, but with this news, perhaps I could, but I would need to know more details. The main point is to value the news correctly, because there's no sustainability in fundamentals without this news, since the company is a $350 M market cap company with 2006 sales of just $5 M and a net income loss of ($19 M). Book value is just $17 M.

Now that I look at the chart I definitely see some inside information being leaked yesterday, look at the volume spike just before the news. Again, how do you get to the $500 M worth? If that's the case the stock is worth a good 50% more than the current price.

Thanks

[David Randolph]

OMEX kind of fell asleep after that big news day. It's a $260 M market cap company which sold $6 M and lost ($23.8 M) in 2007.