Bayport International Holdings Inc. (BAYP)

[stervc]

Valuation Consideration from one of Bayport’s Assets…

Bayport Corporation is now EXTO. From some previous due diligence that is already publicly available, below is some information about one of a few of Bayport Corporation’s assets. From what I can recall, they have about 19 or 20 companies under their umbrella of control. Before I talk about this particular asset, let’s recap some important points about their claims/properties from their recent PR:

http://ih.advfn.com/p.php?pid=nmona&article=48394038
** Bayport Corporation has several subsidiaries and affiliates in gold mining as well as Rare Earths, precious minerals and metals.
** These interests are in Nevada, Utah, Colorado, and Wyoming.
** Its wholly-owned subsidiary, Cosmic American Rare Earth, Inc. (CARE), has secured a $50,000,000 Rare Earth IPO with Aegis Capital Corporation. Details will be announced in the future. http://www.aegiscap.com/
** Non-dilutive financing has been secured.
** Equipment has already been mobilized and put in place beginning its placer gold mining operations on July 10, 2011 of which all required state permits and approvals have previously been in place with the U.S. Department of the Interior Bureau of Land Management (BLM).
** When mining operations have been up and running for a while, the company would like to invite shareholders out to an open house to give all investors a chance to see the company's operations and to meet management.
** In addition to mining, Bayport has many interests in Seafood with their Lobster Pounds in Maine, plus their shrimp and lobster sales outlet in Las Vegas, Nevada.
** Bayport has other specialty sea foods from Louisiana, Alaska and Ecuador.
** More announcements will be released to further explain Bayport Corporation's interest in three newly acquired gold mines and other advancements from their assets.

Also, before talking about this asset, it is important to understand that Bayport Corporation was going to originally place their assets into Bayside Corp (BYSD). Instead, BYSD elected to do a reverse split and you know the rest of that story as Bayport Corporation and BYSD agreed to move on without becoming one company. It was thought that the disagreement stemmed around an issue where the CEO, Lou Porter, was thought to of had a conviction outstanding against him that had taken place back in 1982, but later it was confirmed that it was filed that he had no involvement or knowledge in those transactions that were deemed illegal by the other party and to add, full restitution was made and everything was made right. It is not an issue and has been a dead issue since 1983, but too much tension from the delivery of the situation caused the parties to simply move on from each other.

Before we talk about this particular asset, I think al should read below to see the esteemed profile of Louis Porter, the new CEO of EXTO:

http://cosmicgroup.wordpress.com/about/
Louis Porter / Chairman, Bayport Corporation

Mr. Louis Porter of Tulsa, Oklahoma is CEO and Board Chairman of Bayport Corp. He received a B.S in Petroleum and Natural Gas Engineering from Texas A&I in Kingsville, Texas 1970, now affiliated with Texas A&M. He was a member of the Sigma Tau and Alpha Chi honor societies – Sigma Tau Honor Engineer Alpha Chi Honor Scholastic. He worked five years with Arco as a Petroleum Engineer, Drilling, Gasoline Plant, Reservoir Engineering and Sales of LPG’s. Then Mr. Porter spent 5 years with Thermogas as its Transportation Director, as well as Operations Manager for purchasing wholesale and the retail selling of propane and butane for the entire network. Thermogas was the largest LPG distributor of LPG’S in the nation at that time until merged with Mid America Pipeline.

He started NGL Supply (Natural Gas Liquids) which later became Dalco Petroleum a Public Company in the United States and was 87% owner of Dynex Petroleum a Public Company across Canada and headquartered in Calgary Alberta. He was CEO & Major Owner of 87% of stock in the Canadian operation & CEO and President with 90% stock in Dynex USA. Dynex was very strong in Canada with sales reaching approximately 1 Billion dollars Canadian in oil and gas. Dynex successfully engineered a $75 Million revolving line of credit with Bank of Montreal.

Dalco Petroleum had thirty three separate divisions in various areas of sales, drilling & production of oil and gas, (500+ oil wells in the Oklahoma Sooner Trend) built and owned 3 underground fuel storage units… one in Canada and two in Kansas holding millions of barrels of propane on an ongoing basis. Dalco also owned two steel companies. Utility Steel built sub-stations and Jem Engineering made octagon lighting and traffic poles. Mr. Porter has been a Director, part owner and partner in two regional banks; American Bank of Tulsa and Riverside Bank in Jenks, Oklahoma.

Overall, the parent company employed 1000 employees and drilled over 1500 wells in Canada and the United States. Dalco also manufactured and sold rock wool insulation in Wisconsin and surrounding areas.

Dalco owned and financed Tulsa Polyfilm, (Saran Wrap) which later did a thirty million-dollar public offering for fifteen percent of the company stock. Louis sold fifteen percent of Dynex Petroleum for seventeen million dollars via Bache-Halsey Financial. Mr. Porter was CEO & Chairman of Allied Exploration Corporation a public company which he sold for an undisclosed sum.

Presently he is owner, CEO, President and Board Chairman of Bayport Corporation which is active in company owned gold mines, oil and gas production, senior life insurance, seafood sales and a shrimp processing plant in Louisiana.

Lou has written and sold five full-length novels; he’s beaten former President Gerald Ford out of $14 playing Gin after arranging for his speech to the Canadian Oil Association in Calgary; and he’s defeated Ex-Governor David Hall of Oklahoma in some very serious games of backgammon. Lou is a conservationist and avid hunter and fisherman who loves to photograph grizzly bear by horseback.

Mr. Porter was one of ten industry men picked to successfully put Propane on The Cotton Exchange in Chicago as a commodity.

Now let’s get back to talking about this particular asset. From doing some due diligence (DD) a while back, below is the organizational chart that was posted by smpark on the BYSD board back when the above earlier consideration was on the table:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=62388911
Then it was updated/posted in a better format here by TBEagl: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=63043249
(It has been confirmed that the assets are still under Bayport Corporation so ignore the Bayside mention at the top of the above older organization chart and focus on the companies within the chart as they are all under EXTO as EXTO is now Bayport Corporation.)

The one particular claim/property that’s known to be owned by Bayport Corporation is through their subsidiary Gem, Inc. This property is called the Mary Ann Canyon Gold Mine. The link below confirms that Gem, Inc. (Bayport’s subsidiary) has secured a 50 year contract to begin mining on the Mary Ann Canyon property with the Hardrock Exploration & Mining, Inc. The gold property within the Mary Ann Canyon is considered to have in place recoverable value of $943,133,000 of gold and an inferred recoverable value in place of $3,610,928,000 of gold. That’s a combined total $4,554,061,000 of recoverable value. To verify the data above, please refer to the link below under the Company Overview, Summary, and the sections 2.2, 3.6, and 4.2:
http://www.nationsmarketing.com/files/2-Info_MaryAnn_Ely_HardRock.pdf

The data above within the link above is considered very legitimate in my opinion because it was derived from reports completed by Teck Corporation which trades on the NYSE under the ticker of TCK at $51.00+ per share which below is Teck’s website and stock info:
http://www.teck.com/Generic.aspx?portalName=tc
http://finance.yahoo.com/q?s=TCK&ql=0

Towards the bottom of the link below, a picture of the Mary Ann Canyon Gold Mine within the Mary Ann Placer Property is provided:
http://www.national-gold.com/exhibita.htm


I think important to note is that having a placer mine is a lot easier to mine operations versus the traditional hard rock (lode) mining. The alluvial mining processes for gold are much more accessible for retrieving gold. Again, the gold property within the Mary Ann Canyon is considered to have in place recoverable value of $943,133,000 of gold and an inferred recoverable value in place of $3,610,928,000 of gold. That’s a combined total $4,554,061,000 of recoverable value. Let’s presume that the company will only recover 1% of the total $4,554,061,000 of recoverable value. That would mean that the company would only recover something in the area of $45,540,610 worth of gold. Let’s be even more conservative and consider a 25% profit margin of which we all know will be much higher than 25% to derive…

$45,540,610 x .25 = $11,385,152 Net Profit

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

Net Profit = $11,385,152 Net Profit
EXTO OS = 540,921,049Shares

$11,385,152 Net Profit ÷ 540,921,049 Shares = .021 EPS

Now to derive where EXTO should fundamentally trade from only capturing 1% of their confirmed recoverable value that was done from a report from a NYSE company trading over $51.00+ per share and from just this one claim/property, you must multiply the .021 EPS by a Price to Earnings (P/E) Ratio. Read below to understand the P/E Ratio and to also understand why I am using it as a multiple to derive a fundamental consideration as to where EXTO could very easily be fundamentally trading:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170

The current P/E Ratio for the Gold Industry is 24.50 as indicated below:
http://biz.yahoo.com/p/134conameu.html

.021 EPS x 24.50 = .51 per share

So, very conservatively speaking from one claim/property and if they only claim just 1% of the value that is believe to be recoverable by a very reputable NYSE company trading at over $51.00+ per share (TCK, Teck Corporation), EXTO could very well be trading at the .51 per share range for starters and as more information is released on the rest of their properties already known and the three new gold properties they just mentioned to have picked up.

As you can see, there is a great many companies within Bayport Corporation that could be discussed, but I think the Mary Ann Canyon Gold Mine is one that should be given some high consideration and appreciation to know that it is part of our investment here within EXTO. I think the magnitude of Bayport Corporation is pretty powerful and because of such, they have some things to do to continue convincing the market that they are real. That’s to be expected within the penny stock world as I am sure they know. I think following through with getting current with their filings on pink sheets/otcmarkets.com, filing with FINRA to get their name and ticker change, changing their info at the Nevada SOS site to reflect new management, and a few other things as they have stated are all important and will happen over time.

Bayport has announced that they have non-dilutive financing which has been secured. The OS has been unchanged for many months and their Transfer Agent (TA) is ungagged. They have also just announce that they have already mobilized equipment to begin its placer gold mining operations back on July 10, 2011. They even announced that all required state permits and approvals have previously been in place with the U.S. Department of the Interior Bureau of Land Management (BLM). I think this company is on the right track.

I have done my due diligence (DD) to confirm to my likings that Bayport Corporation is very real. As other investors confirm to their likings, then the price will follow as more and more investors will learn that they are very real too. I was asked to share my thoughts about EXTO and its valuation potential and so I have done. The main point is to help one to see how real and undervalued EXTO is; which is the type of stocks I believe we all continue to search for. I hope these thoughts have helped.

v/r
Sterling