Pacific Gold Corp fka PCFG

[stervc]

PCFG Market Capital Analysis Consideration…

As of Monday, 11 Oct 2010, the current Market Capital (MC/Market Cap) for PCFG was approximately $17,915,810 which was derived by multiplying the current share price of .0249 by the current Outstanding Shares (OS) amount of 719,510,429 shares. Observe…

.0249 Current Share Price x 719,510,429 (OS) = MC
$17,915,810 = MC

Before moving forward with this fundamental valuation, I think investors should read below to familiarize themselves with the definition of Market Capitalization and what it ”potentially” means for us here in PCFG:
http://www.investopedia.com/terms/m/marketcapitalization.asp

PCFG is trading far below its Market Cap based on its potential that has been revealed given the amount of Revenues that’s expected to be generated by PCFG if it achieves the Revenues expected to come from the proven, probable and potential valuations of their properties. From the post below, we know that PCFG has a maximum potential” valuation of $1,513,590,000 in proven, probable, & potential resources:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=55257940

PCFG has $1,513,590,000 worth of proven, probable, & potential resources as explained within the link above. Let’s compare and contrast a Market Capital Analysis with where the price of PCFG is at now versus where it could fundamentally trade based on its $1,513,590,000 worth of proven, probable, & potential resources by solving for MC:

Current Market Cap (MC)
.0249 Current Share Price x 719,510,429 (OS) = MC
$17,915,810 = MC

The ”Maximum Prospective Market Cap” for PCFG = $1,513,590,000

This is where PCFG would be worth a ”potential future unknown share price” multiplied by the OS of 719,510,429 shares.

Now let’s determine the ”potential future unknown share price” for PCFG with taking under consideration if it proves and obtains its full $1,513,590,000 worth of resources. To do this, as you can see, to derive the current price of .0249 per share, we had to take the current MC of $17,915,810 and divide by the OS of 719,510,429 shares as indicated below:

$17,915,810 ÷ 719,510,429 (OS) = .0249 current price per share

Now to derive the ”potential future unknown share price” for PCFG, you can take the ”Maximum Prospective Market Cap” of $1,513,590,000 and divide by the OS of 719,510,429 shares as indicated below:

$1,513,590,000 ÷ 719,510,429 (OS) = $2.10 per share

This means that if PCFG is .0249 with the market only realizing a $17,915,810 MC, then if PCFG could prove and obtain its full $1,513,590,000 worth of resources, then it ”could” fundamentally trade somewhere in the area of $2.10 per share.

Even if you remove the resources that are ”probable and potential” resources from the equation, you would still only have $650,000,000 of ”proven” resources which was explained within the valuation post below:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=55089771

Let’s now consider where PCFG could fundamentally trade given only taking under consideration its ”proven” resources valued at $650,000,000 as the ”Maximum Prospective Market Cap” for PCFG:

$650,000,000 ÷ 719,510,429 (OS) = .903 per share

This means that since PCFG has $650,000,000 worth of ”proven” resources, then PCFG ”should” fundamentally trade somewhere in the area of $.903 per share.

I use the word ”should” because these thoughts are only taking under consideration one of a few properties belonging to PCFG.

All of the thoughts above are not the gospel and should used as a tool where the substitution property should be taken under consideration as deemed necessary from what is actually achieved by the company or as other variables to the above formulas used change. The basic point that I am trying to make is that in my opinion, I believe that PCFG is still undervalued based on its proven, probable, & potential resources.

v/r
Sterling