Capital Growth Systems, Inc.(fka CGSYQ)

[rbd317]

afterall, this is not about $0.001 or $0.01... it's about who will eventually own the shell... if pivotal will own 61% or more of this (CGSYQ) by conversion of remaining debentures after the assets and assumed liabilities have been transfered, the mere association with them is worth way more than a penny based on the possibility that one of its businesses will eventually go public via this shell...

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=61624809

that's the reason why I'm holding and accumulating whenever there is a chance....

i suggest Ensign to spend his time calculating what will be left on the ESTATE (CGSYQ) after the assets and assumed liabilities are transferred to Pivotal and the ESTATE (CGSYQ) receives the cash from and offset part of the debentures of Pivotal and see whether CGSYQ is already debt free.. if it is, then the chances of common surviving increases... otherwise, we are left to the mercy of Pivotal on whether they will convert and sees value with the shell...

remember, CGSYQ has been losing money... the TAX LOSS CARRYFORWARDS which currently stands in the US at $68.5 million and $10m in UK could be a huge asset to whoever will own this shell... these will remain with the ESTATE (CGSYQ) and carried through when this becomes a SHELL.... this is maybe the reason why Pivotal has kept a portion of the debentures with the ESTATE.

GO FIGURE IT OUT..... $68.5m potential tax benefits (offset against income) / 497m shares (diluted after conversion)...

Again do the math.. if you include the $10m from UK that's $78.5m / 497m shares...

I've done M&As in my line of work and we look for hidden values. In this case, I see one on tax loss carryforwards....

http://www.sec.gov/Archives/edgar/data/1116694/000119312510260424/d10q.htm

NOTE 12. Income Taxes.

The Company has Federal net operating loss (NOL) carry forwards of $68.5 million in the United States (U.S.) and foreign (U.K.) NOL carry forwards of $10.0 million at September 30, 2010 and December 31, 2009. The Federal NOL and credit carry forwards have been reduced to reflect approximate annual limitations under Internal Revenue Code Sections 382 and 383 as a result of the various subsidiary stock acquisitions in prior years. It is likely subsequent equity changes have since occurred to further limit the utilization of these NOLs and credit carry forwards.

GLTA!