Michael Goode

Fredrick’s of Hollywood and Movie Start Inc.: Reverse Merger Mania

You bring up good questions. I think I mentioned in my previous article on MSI/Fredrick's that Fredrick's had been in bankruptcy. Anyway, all the troubles with bankruptcy were due to over-leveraging.

In my pro-forma I necessarily included the public costs, because I did combine the two companies, and the costs of Sarbox et al. should not increase substantially just because the company is now larger.

As to the valuation, you are looking a lot smarter than I am what with the continued troubles in retailing.