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CRGP .20+ Actual Fundamental Valuation to Consider

Usually whenever I create a fundamental valuation post, it is derived from speculation predicated upon the ”potential” that exists of a company to becoming profitable upon executing their business objectives.

However, here with CRGP, this fundamental valuation will not be based upon its ”potential” revenues for being profitable, but instead will be based upon its ”actual” revenues that have been generated to a level to where CRGP is profitable. This means that this valuation will lean more towards being ”factual” versus ”speculation” based on what has been filed within the company’s financials. Let’s further observe some ”Key Variables” within the Annual Report and the last two Quarterly Reports to include its most recent Quarterly Report filed on Aug 19, 2015 to show the consistency of sustained growth.



For the year ending Dec 31, 2014, CRGP reported the following key variables to consider:
http://www.otcmarkets.com/financialReportViewer?symbol=CRGP&id=135644
Assets = $19,908,111
Liabilities = $7,105,629
Equity = $12,802,482

Revenues = $15,693,666
Expenses = $7,248,635 + $669,512
Net Income = $7,775,519



For the quarter ending Mar 31, 2015, CRGP reported the following key variables to consider:
http://www.otcmarkets.com/financialReportViewer?symbol=CRGP&id=138139
Assets = $19,650,272
Liabilities = $4,711,927
Equity = $14,938,345

Revenues = $5,035,867
Expenses = $2,711,621 + 194,383
Net Income = $2,129,863



For the quarter ending Jun 30, 2015, CRGP reported the following key variables to consider:
http://www.otcmarkets.com/financialReportViewer?symbol=CRGP&id=143463
Assets = $21,080,227
Liabilities = $4,688,677
Equity = $18,193,345

Revenues = $8,907,600
Expenses = $4,809,105 + 283,200
Net Income = $3,815,295



Net Income (Profit) Margin = $3,815,295 ÷ $8,907,600 = 42.8%

The beauty about CRGP is that the company has reflected consistent growth as can be confirmed from the key variables within its Annual and Quarterly Reports above. Now let’s derive an annual fundamental valuation considering that the San Pedro Mine has recently been sold from the quarterly revenues above and by considering the quarter to quarter growth for this year of 2015. This means that to get an ”actual” fundamental valuation, we must consider only the revenues of the remaining Jovita Mine going forward for now.

http://www.otcmarkets.com/financialReportViewer?symbol=CRGP&id=138139
$3,147,417 = Jovita Mine for the quarter ending Mar 31, 2015
($2,580,882 + 566,535)

http://www.otcmarkets.com/financialReportViewer?symbol=CRGP&id=143463
$6,180,200 = Jovita Mine for the quarter ending Jun 30, 2015
($5,344,560 + 835,640)

Now let’s derive an annual amount considering only the revenues from the Jovita Mine and considering that the revenues only remain constant/consistent even though thus far the revenues have been exponentially growing at a doubling rate per quarter for 2015.

$6,180,200 x 4 Qtrs = $24,720,800

$24,720,800 x .428 Net Profit Margin = $10,580,502 Net Income

The Outstanding Shares (OS) is the key fundamental denominator that is used to assess the fundamental valuation of a company to help derive the Earnings Per Share (EPS) for a company. To derive an EPS for CRGP, we must know the OS and the Net Income amounts. The last reported number for the OS was 242,823,237 shares within the Aug 13, 2015 PR below:
http://www.otcmarkets.com/stock/CRGP/news/Calissio-Announces-Retirement-of-77-250-000-Million-Shares-of-Stock-and-Reports-Progress-on-Share-Buy-Back-Program?id=112133&b=y

As a ”worst case scenario” for the OS, let’s consider the OS to be roughly 3 times that amount and round the OS to being 750,000,000 shares for the purpose of this post since the announcement above. Please use the Substitution Property to substitute out any variable that might change later in the future such as the amount of Net Income or particularly the amount for the OS if it is higher or lower than the number I’m considering for the purpose of this post.

CRGP is on schedule to generate at least $10,580,502 in Net Income over the next four quarters. This gives us logic to derive a valuation from the related formulas indicated below:

Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)

So…

$10,580,502 Net Income ÷ 750,000,000 shares (OS Worst Case) = .0141 EPS

To determine where a stock should fundamentally trade, multiply the EPS with the Price to Earnings (P/E) Ratio. For inquiring minds, the P/E Ratio is basically the ”Growth Rate” for a group of similar stocks within a particular Sector or Industry for where a stock would be classified to exist/trade. As that stock exists within that particular Sector or Industry, it is expected to grow at the same rate as such like stocks within that Sector or Industry. For those new for understanding what a P/E Ratio is, read the links below that hopefully will help:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170
http://www.investopedia.com/terms/p/price-earningsratio.asp

From the link below, CRGP trades within the Basic Materials Sector and has 17.15 as the P/E Ratio:
http://biz.yahoo.com/p/1conameu.html

Consider now the formula below to derive where CRGP could be justified for trading through logical deduction:

EPS x P/E Ratio = Fundamental Share Price

So…

.0141 EPS x 17.15 P/E Ratio = .241 per share

This means that given all of the considered variables above, the Fundamental Share Price for which CRGP could trade could be somewhere within the .24+ per share price range if all of the stars continue to align according to the above variables.

As for most or almost all stocks within the penny stock world, the stars usually don’t align for whatever has been positively speculated about a stock with such a huge magnitude. Please know that me posting these thoughts will not be the justification for any kind of significant price movement and price sustainment. Such will be justified not only by the ”substance” that CRGP continues to deliver to continue confirming its growth, but over the unknown time that it will take for the market to realize the undervaluation of CRGP.

The primary purpose of this post is to help one to have a framework to consider using as a basis for formulating a valuation to consider. Please use the Substitution Property to substitute out any variable that might change later in the future such as the amount of Net Income or particularly the amount for the OS if it increases. Still, consider now if I am only half right… or a third right… or a quarter right… or even a tenth right… with my thoughts above. Regardless… CRGP is significantly undervalued at these levels.

To further understand where the revenues are coming from to make CRGP so profitable, review the company’s website below and see how they have plans to continue its route of generating $141,750,000 USD:


http://www.calissioresources.com/


http://www.calissioresources.com/ama/projects.html

…
• Inclusive of pending mining claims to increase Jovita property footprint from it current 250 hectares to 2,800 hectares (approx.)
• 45 million tonnes of ore
• Average grade of 0.80 lbs per tonne (cut-off grade of 0.2 lbs per tonne)
• 36,000,000 tonnes or 792,000,000 lbs. Cu.


… The initial 250 hectare parcel is currently viewed to contain the following assumptions:
• 70,875,000 lbs of copper concentrate for every 250 hectares
• Net revenue per 250 hectares sector of approximately $3.20-$1.10=2.10 *70,875,000= $141,750,000 USD

If the Outstanding Shares (OS) is actually 242,823,237 shares (or lower) as like what was posted courtesy of Nadendla below, then the .241 per share valuation above should actually tripled to be somewhere in the area of .72+ per share (or higher):
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=116336633

CRGP generating this cash to pay a recent cash dividend is very believable in my opinion considering my conversations with their Transfer Agent and based upon the FINRA database confirming that the cash dividend has been approved and properly processed for distribution. Here is what I got from the CRGP Transfer Agent before the cash dividend was approved by FINRA:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=116271240

Then I received an email from the Transfer Agent informing me that they have received the wire from the issuer (CRGP) into their offices via wire and that they paid the cash dividend that morning to the DTCC via wire as well. They told me that the DTCC is who will be paying the brokers directly. I was told to check with my broker on when I would be receiving the funds in my account. Below is the confirmation of FINRA approving the cash and stock dividends for CRGP:

http://otce.finra.org/DailyList
(Must search by the CRGP ticker and by the date Aug 18, 2015 to get below.)



v/r
Sterling