HydroPhi Technologies Group Inc. (fka HPTG)

[WealthWithoutGreed]

Toxic Debt:

Let's assume there is enough toxic debt remaining to take the share count up to the maximum authorized level of 600 million shares. (I don't believe this scenario, but just to illustrate my point I'll assume it to be a possibility).

Fair value of stock is ~1X sales (approximate industry ave)
30 mill/600 mill= $.05 per share

Let's consider a worst case scenario:

There is so much toxic debt that the company needs to increase authorized shares to 1 billion shares.(Ridiculous but let's consider it)

Fair value of stock is:
30 mill/1 bill- $.03 per share

So even if that ridiculous scenario turns out true, the stock is severely undervalued here at just over $.01.

Now let's assume a more likely scenario:

HPTG uses some of its revenues/profits/cash to payoff any remaining toxic debt. They have already spent ~$1 million to expand the business since the merger. This strongly indicates that the company either has cash or has the availability to get financing.

In this case the stock should reasonably trade at $.075 per share.
30 mill/400 mill= $.075

Isn't it reasonable to expect the company to do everything possible to prevent toxic debt from converting? The only reasonable answer is yes.