Sunergy, Inc. (fka SNEY)

[stervc]

Huge SNEY Confirmation & Valuation…

I will show why I believe that SNEY could ”fundamentally” trade and be worth anywhere from $3.00+ per share to $6.36 per share, but first, let’s talk about the huge SNEY Confirmation then let’s talk about the huge SNEY Valuation and how it was derived.

SNEY had increased their Authorized Shares (AS) to 3,750,000,000 shares as of 8/17/2010 as confirmed below back during the origination of discussions to complete the huge acquisition:

http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=975An7%252fwOB199%252bt31D3JZw%253d%253d&nt7=0

http://nvsos.gov/sosentitysearch/corpActions.aspx?lx8nvq=975An7%252fwOB199%252bt31D3JZw%253d%253d&CorpName=SUNERGY,+INC.

Usually within the penny stock world, we couldn’t have been so sure that such would have been a good thing, but here with SNEY, we know that such an increase was a good thing because of the company telling us what they were in the process of acquiring within their previous PR below:

http://ih.advfn.com/p.php?pid=nmona&article=44785755&symbol=NO^SNEY
Sunergy, Inc. (the "Company") (PINKSHEETS: SNEY) reports that due diligence on the Allied Mining and Supply, LLC (Nevada) planned acquisition of 100% of their Company has been completed successfully (See Press Release dated September 7, 2010). The terms of the definitive agreement have also been agreed upon and the Company intends to close the transaction as soon as practical. Full details will be published at closing, but suffice it to say the recent depressed market for Sunergy shares has had no adverse effect on the Company's ability to complete the transaction. …

We know that the company had to use shares as leverage to acquire this over $2 billion valued company since they didn’t have cash for doing so. Using shares/equity is also how the deal transforms into a ”win win” situation for all parties involved with consummating the acquisition.

This increase in the AS is a huge subliminal hint that the acquisition will no doubt be completed in my opinion and I expect to see news of this closing with some terms of the deal in the very near future.

Here’s the ”fundamental” beauty about this deal for us SNEY shareholders. The biggest shareholders will be the parties on both sides of the acquisition which will become the largest shareholders so they will definitely have a vested interest in adding value to grow our investment here in SNEY. This is because the greater they grow our investment, the greater they grow their investment.

I am confident that whatever the amount of shares used for the acquisition will not be enough to max out the current AS of 3,750,000,000 shares. The previous AS was 1,875,000,000 shares. The currently known Outstanding Shares (OS) is 946,197,880 shares as confirmed within the filing below:
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7433234

Since 946,197,880 shares is roughly about 50% of the AS of 1,875,000,000 shares, I think the deal will require to have utilized roughly around 50% of the current AS of 3,750,000,000 shares. This means that the OS after the closing of this $2 billion acquisition will leave the new OS to be slightly under 2 billion shares, but I will use 2 billion shares as a worst case scenario to now derive a ”fundamental” valuation.

Read the post below to see how I derived a SNEY valuation of $2,321,428,200 from closing the acquisition:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=55874988

From doing some research from Google and other resource sites, it is considered that for the alluvial mining that SNEY will be doing, the Net Costs to produce gold in Africa ranges from $400 to $700 per ounce. So, with the price of gold being over $1300 per ounce, this means that approximately $600 to $900 per ounce will be Net Profit.

For the purpose of this post and for the purpose of trying to be conservative, I will consider Net Costs/Expenses to be the higher $700 per ounce to produce gold resulting in the lower $600 per ounce for the Net Profit per ounce. Now, if you divide $600 by $1300, you would get roughly about a 46% Net Profit Margin.

Now observe a SNEY valuation given a worst case scenario OS of 2 billion shares, a $2,321,428,200 Revenues potential, and 46% Net Profit Margin as I had explained above…

$2,321,428,200 Revenues x .46 Net Profit Margin = $1,067,856,972 Net Profit

Now let’s derive an Earnings Per Share (EPS) using an OS of 2 billion shares:

$1,067,856,972 Net Profit ÷ 2,000,000,000 (OS) = EPS
.53 = EPS

Now, to determine where SNEY should be fundamentally trading upon the closing of this acquisition, let’s use a lower and more conservative Price to Earnings (P/E) Ratio of 12 to use as the multiple or the growth rate for the Industry or Sector of which SNEY trades up under:

12 P/E Ratio x .53 EPS = SNEY Fundamental Share Price of Trading
$6.36 = SNEY Fundamental Share Price of Trading

This means that when the closure of SNEY acquiring 100% of Allied Mining and Supply, LLC, it should ”fundamentally” trade at $6.36 per share.

I’m not saying that SNEY will go to $6.36 per share immediately or if it would ever get to $6.36 per share, but I am simply saying that SNEY is still significantly undervalued at these levels, especially if they close the acquisition. Even if you max out the AS to be the OS to use with this equation, you would still get SNEY to be trading at a fundamental share price of still north of $3.00+ per share.

In closure, I think it’s worth reiterating that at some point in time, I think the market will realize even more that SNEY has an individual that is part of their team that has written reports about the quality and validity of their property that has 31 years with the US Department of Energy (DOE) and is the person who headed up the famous Yucca Mountain Project. This person is Robert A. Levich, CPG, PG, EurGeol, FSEG, FSGA, Director.
http://www.sunergygold.com/corpmanagement.html

A man with his qualifications would not be here with SNEY doing reports and vouching for them unless he knew that what they have are not just real, but very real. His credentials speak for themselves. Robert A. Levich is the person who is responsible for writing the report below about SNEY’s Nyinahin Prospecting Concession located in Ghana:
http://www.sunergygold.com/ALLUVIALGOLDMINING.pdf

SNEY controls 100% of the 150 SQ. Km. Nyinahin mining concession with a full prospecting license. The concession is surrounded by several operating mines and is adjacent to Newmont Mining's property. Newmont Mining trades on the NYSE under the ticker of NEM and it currently at $58.00+ per share:
http://www.newmont.com/

Below are some other companies within the area that could be used as a future gage for confirming the magnitude of SNEY’s location of properties:

AU:NYSE @ $45.00+ per share:
http://www.anglogold.co.za/default.htm

GSS:AMEX@$4.00+ per share
http://www.gsr.com/

GOLD:NASDAQ@$91.00+ per share
http://finance.yahoo.com/q?s=GOLD

IAG:NYSE@17.00+ per share
http://www.iamgold.com/

ABX:NYSE@46.00+ per share
http://www.barrick.com/

SNEY has recently PR-ed below that they have completed the due diligence (DD) for the 100% acquisition of Allied Mining and Supply, LLC (Nevada) and expects to sign a definitive agreement very soon:
http://ih.advfn.com/p.php?pid=nmona&article=44301821&symbol=NO^SNEY

The company they are acquiring has recently obtained a NI 43-101 Technical Report on their property being acquired. In order for the stars to properly to align within the universe for us SNEY shareholders, we simply need for the acquisition to close.

Oh, and before I forget, the above valuation does not even include the recent PR they just released on the Rare Earth Elements (REE):
http://ih.advfn.com/p.php?pid=nmona&article=44916977&symbol=NO^SNEY

Here’s an article to understand the importance of SNEY and its role with providing the rest of the world a source for obtaining REEs:
http://www.bbc.co.uk/news/business-11633929

I wish everyone well.

v/r
Sterling