ABQ Still Overvalued as Brands Collapse

Allied Brands Ltd. (ABQ) shareholders should take note at the continued dilution in their shareholdings.  In the next few weeks, another almost 5.5 MILLION shares will be unfrozen from trading. 

With another million more coming out of escrow shortly.

With retail trading down massively across the board, these brands (Baskin Robbins, Cookieman, Kenny's Cardiology gift shops) it is clear that this company looks to be in more trouble than most.

Allied paid:

$7.1 MM           Awesome Water

$5.8 MM           Kenny's Cardiology

$5.83 MM         Cookieman

$18.73 MM       TOTAL PURCHASE PRICE

Current Market Valuation   $18.0MM

Curiously this doesn't include the largest and most reputable international brands, Baskin Robbins Ice Creamery.  Clearly the market understands that these brands are slowing deteriorating under the failed management at Allied Brands, just as the Baskin Robbins shops continue to fail.

With another 5% of shares now being released for trading (and let's face it, the people paid with these shares wouldn't seem to be likely to sit on them in the face of the facts that they are aware), Allied Brands (ABQ) looks to be headed to single-digits before too long.