BGM Holding companies Leverage Comparison.(coutesy poster "diddly squat" over on SI)....hsb
GCC.H vs LG*
*Assuming financing closing
I'm assuming for this analysis that the BGM warrants are in the money.
Leverage wise
GCC.H shares out - 14 million (not fully diluted)
LG shares out - 37.66 million (not fully diluted)
GCC.H - Last price $0.345
LG - Last price $0.05
GCC.H market cap - $4.83 million
LG market cap - $1.88 million
BGM shares owned
GCC.H - 1.8 million + 200,000 wts
LG - 1.04 million + 200,000 wts
For every 7 shares of GCC you have leverage to 1 shares of BGM
For every 30 shares of LG you have leverage to 1 shares of BGM
Current market price of GCC is valuing its BGM at $2.41
Current market price of LG is valuing its BGM at $1.52
LG would need to trade at $0.08 to be the same value as GCC currently is or GCC would have to be at $0.22 to be the same value as LG is currently. I'm assigning zero value to either companies properties, etc. It appears that at current prices LG offers better leverage to the BGM. However I need to do another analysis using fully diluted shares to determine more accurate leverage.
Not using fully diluted.....
If BGM were to go to $5.00
GCC.H's BGM holdings would be worth $0.71 per share ( 2 times current price)
LG's BGM holdings would be worth $0.16 per share (3.2 times current price)
If BGM were to go to $10.00
GCC.H's BGM holdings would be worth $1.43 (4.1 times current prices)
LG's BGM holdings would be worth $0.33 (6.6 times current prices)
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