Good Gaming Inc (GMER)

[stervc]

HDSI/Good Gaming “$20 Million” Revenues Confirmation Link…

Below is one of the links for where I had gotten confirmation of what Good Gaming is expected to generate for Revenues for 2014, 2015, and 2016.

http://finance.yahoo.com/news/good-gaming-vaults-forefront-esports-124500618.html
Good Gaming Vaults into the Forefront of the eSPORTS Marketplace
March 5, 2014 7:45 AM)
Good Gaming Inc. expects to capture in its first full year from all sources of revenue between $2.0 and $3.5 million. In its second full year of operation, Good Gaming Inc. expects to capture from all sources of revenue between $5.0 and $8.0 million and in its third full year of operation, Good Gaming Inc. expects to capture from all sources of revenue over $20 million.

So, based on the official link above and the date of that link in 2014, consider below the maximum ”expected” Revenues for Good Gaming for the years 2014, 2015, and 2016:

~ Expected 2014 First Year Revenues for Good Gaming = $3,500,000
~ Expected 2015 Second Year Revenues for Good Gaming = $8,000,000
~ Expected 2016 Third Year Revenues for Good Gaming = $20,000,000+

Here is a little more explanation of how they are generating their Revenues:

http://finance.yahoo.com/news/good-gaming-vaults-forefront-esports-124500618.html
"There is big money to be made in the video gaming arena and Good Gaming is perfectly positioned to help players excel. The firm will derive its revenue mainly from tiered membership, pay-to-play, merchandising, partnership, and advertising revenue. Good Gaming Inc., with a .42% (.0042) conversion of the producible target market, expects to have after the first full year of operation approximately 300k+ convertible members with basic individual membership dues in the $4-$20 range per month on average and organized team membership dues in the $75-$250 range per month on average."

Now with regarding HDSI, let’s max out the Outstanding Shares (OS) to be 2 billion shares as I had confirmed within the post below:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=118326567

Now let’s consider a P/E Ratio of 59.90 for Multimedia & Graphics Software which is the Industry in which HDSI would now logically exist since bringing in Good Gaming and since that is the Industry in which Activision Blizzard, Inc. exists since they are providing the support too to Good Gaming:

http://biz.yahoo.com/p/820conameu.html

(I will also later consider a P/E Ratio of 15 for a much more conservative perspective.)

Also, within the link below, Activision Blizzard, Inc. has a Net Profit Margin of 20.31 which makes it fair to presume that Activision Blizzard, Inc. is going to help Good Gaming (HDSI) to mirror something similar:
http://biz.yahoo.com/p/820conameu.html

Until any of these Revenue and Net Income figures are placed into any filings, they should be considered speculative. However, there is enough information that exists that allows us to fairly speculate of what ”could” be happening if the company does what they say they will do. So… let’s speculate to assess a fundamental valuation of where HDSI could fundamentally trade since now bringing in Good Gaming…



The Outstanding Shares (OS) is the key denominator that is used to assess a fundamental valuation through the computation of an Earnings Per Share (EPS):

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

The EPS is what is used by the market to determine where a stock should trade by multiplying that stock’s EPS by a Price to Earnings (P/E) Ratio which is the growth rate for a particular Sector or Industry:

EPS x P/E Ratio = Share Price Valuation

For those new for understanding what a P/E Ratio is, read the links below that hopefully will help:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170
http://www.investopedia.com/terms/p/price-earningsratio.asp



HDSI Fundamental Speculative Valuation for 2015
Presumed Revenues = $8,000,000
Presumed Net Income = $8,000,000 x .2031 = $1,624,800
Presumed OS = 2,000,000,000 Shares
Presumed P/E Ratio = 59.90

Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)
$1,624,800 Net Income ÷ 2,000,000,000 (OS) = .0008124 EPS

EPS x P/E Ratio = Share Price Valuation
.0008124 EPS x 59.90 P/E Ratio = .0486 Share Price Valuation

Now with considering a much more conservative P/E Ratio of 15…
.0008124 EPS x 15 P/E Ratio = .0121 Share Price Valuation



HDSI Fundamental Speculative Valuation for 2016
Presumed Revenues = $20,000,000
Presumed Net Income = $20,000,000 x .2031 = $4,062,000
Presumed OS = 2,000,000,000 Shares
Presumed P/E Ratio = 59.90

Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)
$4,062,000 Net Income ÷ 2,000,000,000 (OS) = .002031 EPS

EPS x P/E Ratio = Share Price Valuation
.002031 EPS x 59.90 P/E Ratio = .1216 Share Price Valuation

Now with considering a much more conservative P/E Ratio of 15…
.002031 EPS x 15 P/E Ratio = .0304 Share Price Valuation



Everyone reading this please understand, I have been wrong before with some valuation thoughts, but not because of what I had posted, but because of the company not living to its expectations of what they presented as speculative information to derive a potential valuation. I say this because the success of any of the fundamental valuations I presumed above will not be predicated upon me simply posting such and saying so. The success will be predicated upon the company carrying out their goals and expectations that has been laid out to consider.

Let’s say that Good Gaming only achieves half of the Revenues from any of the expectations indicated above. Also, let’s say that if any of the variables indicated above change; then use the ”Substitution Property” to sub in or out certain numbers relating to any of those key variables related to those formulas above.

Please, this post is not the gospel for where HDSI is going to be trading. That will be up to the company to deliver. Use this post only as a framework to have something to maybe go by to help understand where HDSI could be trading after reading ”official” numbers and information released by the company.

What’s known are the expected revenues for 2014, 2015, and 2016 for Good Gaming. What is not known are the ”actual” revenues for 2014, 2015, and 2016 for Good Gaming. I am here taking the risk that the ”expected” and ”actual” revenues and other key variables will be somewhere in the area of what the company is claiming in 2016 since we are nearing 2016. This is why I made the decision to go long with HDSI.

v/r
Sterling