Cartel Blue Inc (CRTL)

[The_Pink_Lawyer]

What da heck everyone going crazy fer? It seems to me that Chad, per his e-mail to vantillian, verified that we got a 750 million O/S, remember, this was the scenario that we calculated the true RVGD valuation upon! So, in other words, this Board was pretty spot on with our analysis of RVGD!

From MercosurTrav's post (copied below): taking a "worst case" scenario of 750 million O/S * an "extremely conservative" multilier of 12 + RVGD revenue = a estimated true RVGD valuation of .096!!!!

Okay, everyone got that? Now go chillax and enjoy da weekend cause that's what TPL gonna do! And if RVGD does sell-off Monday morning from some nutwhacks, so be it, I'll be there licking my chops GOBBLE GOBBLE GOBBLE.


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Posted by: MercosurTrav
In reply to: None Date:1/30/2008 7:53:18 PM
Post #of 40172

.<font color=red> RVGD Max OS & Valuation Consideration…

To calculate the absolute worse case scenario Outstanding Shares (OS) with taking into full account the conversion of any outstanding promissory notes and preferred shares on a fully diluted basis as stated from the recent news, consider below:
http://biz.yahoo.com/iw/080129/0354460.html

From the PR:
“The contract being processed today will generate approximately $5M in quarterly revenues with forecasted margins of at least 15%.”

The Interpretation IMHO:
$5,000,000 x .15 = $750,000 per qtr

$750,000 x 4 qtrs = $3,000,000 as Profit/Income

From the PR:
“…our quarterly Pro Forma numbers support an estimated .001 earnings per share per quarter, or .004 per share on an annual basis.”

The Interpretation IMHO:
Revenues – Expenses = Income
Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)

Consider the known variables as we solve for “X” with “X” equating to the OS:

Income = $3,000,000
EPS = .004 per yr
OS = X

So, again…

Income ÷ OS = EPS

$3,000,000 ÷ X = .004
$3,000,000 = .004X
$3,000,000 ÷ .004 = X
750,000,000 = X

This means that 750,000,000 Shares is the RVGD worse case scenario OS after taking into full account the conversion of any outstanding promissory notes and preferred shares on a fully diluted basis.

From the PR:
”Peter Collorafi, Revenge Designs President and CEO, stated, "This is just the first of three pending contracts we have previously stated that we will seek to deliver to our shareholders in 2008. While our merger was a difficult transition for Revenge Designs, these contracts should dispel any doubt as to the direction the Company is headed.”

The Interpretation IMHO:
This leads me to think that those other two major contracts are just as big or bigger, but I will remain conservative and say that those other two contracts will only be half as good as the contract just announced.

This means that we can skip much of the math to derive at an already calculated EPS reflected below for considering the current contract of .004 EPS and the speculation of the other two contracts:

.004 + .002 +.002 = .008 EPS per yr

This is an EPS of .008 per share. To determine a share price in which RVGD should fundamentally be trading, go to the Yahoo link below and see that RVGD would probably trade within the Sector of Consumer Goods within the Industry of Auto Parts. The Auto Parts Industry has a PE Ratio of 42.90 as their growth rate as of 28 Jan 08:
http://biz.yahoo.com/p/333conameu.html

What this means is that we could logically use 42.90 as the PE Ratio to reflect the growth rate of the “potential” price of RVGD below:

42.90 Auto Parts Industry PE Ratio x .008 EPS = $0.343 Potential Price Per Share

For those choosing to remain conservative and go with a 12 PE Ratio, then consider below:

12 Conservative PE Ratio x .008 EPS = .096 Potential Price Per Share

The above thoughts are derived through logical deduction that has been released by RVGD; the company. Such was what I had seen from reading the recent PR. I can’t guarantee any of the prices I mentioned above as much will reside with RVGD and how they succeed in their business plan. I truly believe that RVGD will succeed with their business plan as there is no reason why such should not happen from doing my due diligence (DD) in my opinion. I hope this helps!

v/r
Sterling
http://investorshub.advfn.com/boards/read_msg.asp?message_id=26415124

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Posted by: vantillian
In reply to: None Date:2/2/2008 11:31:35 AM
Post #of 40172

***ATTENTION BOARD - VERY IMPORTANT***

Just got this from Chad...

Bob,



I’m out of the office until Monday taking some time off. I’m getting allot of emails showing up on my PDA about the A/S increase. I am not at home and out spending time with my family. Can you post this letter on Ihub so that people will have the information that I have. First off, everyone needs to understand that the pro forma numbers we used were based on 957M shares which we felt was a worst case scenario. I believe we will be able to reduce that number some but I wanted to give investors the worst case possible. I’m going to give the entire share structure as I know it to end any speculation. The transfer agent is not gagged but simply has a policy against giving out information on Pinksheets. I have full access to the transfer agent and will be glad to give shareholders updates bi-monthly. Here is the current share structure.



As of yesterday



5M preferred issued and outstanding. 2.4M for Mr. Carnes, 3.6M for Mr. Collorafi



The reality..

A/S 1.5B

O/S 363M

Float 318M



The Carnes factor..

240M converted preferred

370M for 2 promissory notes (worst case number, could be less than half)



There was additional preferred issued to Mr. Collorafi (I don’t know the exact number yet) so that he would maintain control. This is a voting bloc, “poison pill” and not intended for conversion.



That brings the total O/S to about 957M with a 318M float. The A/S was increased to 1.5B to insure there was adequate room for conversion of any shares and to allow for some additional treasury shares for future growth. Please use the 957M figure when doing your fundamental analysis. Tell everyone that nothing has changed and we are still looking at .001/.004 earnings once production starts. Production however may not start for several months so the Company may need to do some bridge loans. Equity may be used to secure these loans but we are not dealing with Carnes anymore so any financing we do will be the best deal we can get. I’m sure those who would like to see the Company fail will be out in full force over the weekend spinning the A/S increase. Do not expect a press release because this is information I have readily given anyone who has bothered to contact me. For those who want answers they need to contact me and not read the latest gossip on the message boards. I am the only one authorized by the Company to give information to investors. If folks have questions they need to ask me.. not some anonymous poster on a message board. Again, I will be out of the office until Monday.. I need days off too.





Warm regards,



Chad C. Sykes

President and CEO

www.numarketsolutions.com

Numarket Solutions, Inc.

Phone: [phone]

[e-mail]