Tautachrome Inc (TTCM)

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The Grainster guys aren’t the only ones throwing around big, questionable numbers. As Senior Editor George Waldon reported, a company incorporated in Little Rock just six months ago has claimed that its stock is worth $1 billion. A billion isn’t a trillion, obviously, but for Red Alert Media Matrix to claim a current value of 10 figures is equally pie-in-the-sky.

When we first heard of Red Alert, led by Tim Holly of Atlanta, back in January, it was boldly bidding $59 million for the photographs and sports memorabilia amassed by John Rogers of North Little Rock. Unfortunately, Red Alert couldn’t prove that it actually had $59 million to spend. Not to get too mathematical, but it does seem like a company worth $1 billion should be able to come up with less than 6 percent of that in cash.

But it couldn’t, so now Red Alert has cut its offer by more than half — to $28 million — and pledged that $1 billion in stock. To back up that valuation, Red Alert points to a $1.4 billion “insurable value” of the Rogers assets. But if the photos and memorabilia are worth that much, why oh why is Rogers’ business in receivership? He owes “only” about $50 million, which, again, is a tiny fraction of the supposed value.