Multi-Chem

[GPD]

I have taken brief look into the stock, from the perspective of liquidation value.

IMO, we should take adjusted values, rather the face values of the current assets for the liquidation value. A back-of-envelope estimation below.

Key current assets, base on 1Q report
- cash 38 mil, no discount required
- inventories 25 mil. Since the inventories are finished good, a greater discount needed, probably 50% to about 12 mil
- receivable 79 mil. Almost all receivable are 3rd parties, we may need to discount 80%, thus 63 mil
- Total liabilities is 82 mil

Liquidation value = 38+12+63 - 82 = 31 mil, which is still lower than MC of 43 mil @$0.475

All comments are welcomed

(not vested)

How do you derived at those discount %? Are there any guidances for that? thanks.