$heff's $tation of $tocks & $olid DD

[stervc]

GRMU Very Possible Valuation…

What I am about to logically explain is how GRMU could very possibly be valued at .113 per share given the information that we know to publicly exist. Please follow the flow of information below…

From the GRMU last 10K filed below, Expenses for 2006 equated to $2,070,460:
http://knobias.10kwizard.com/filing.php?repo=tenk&ipage=4955054&doc=1&total=&back=2&g=&attach=on

From the GRMU last 2007 10Q filed below, Expenses equated to $525,689:
http://knobias.10kwizard.com/filing.php?repo=tenk&ipage=5278255&doc=1&total=&back=2&g=&attach=on

GRMU did a ticker change from GRUS to GRMU as indicated within the "OTCBB Daily List Index 2008" posted on 1 Feb 08 6:15:09 PM, but effective on 4 Feb 08 below:
http://www.otcbb.com/asp/dailylist_detail.asp?d=02/01/2008&mkt_ctg=OTCBB
and here…
http://www.knobias.com/story.htm?eid=3.1.1d37ff0d8e2f3e7164f4f8677d93bf3874e681db01a42cca9523dc2fa07c7c4d

At such time, it was also indicated that a 1-1,000 reverse split was executed. From previously SEC filings, the Outstanding Shares (OS) amount was known to be 4,800,745,405 shares.

Given the OS post reverse split should logically be 4,800,745 shares. It can also be seen as such here below:
http://www.knobias.com/individual/public/quote.htm?ticker=GRMU
Outstanding Shares: 4,800,745
Source: Stock Split ( 02/04/2008 )

That seems a little unrealistic given the previous volume over the past few days since the effective date of the reverse split of 4 Feb 08.

Since then, GRMU has traded volume in the amount of 177,443,379 shares as indicated below:



Since the GRMU reverse stock split on 4 Feb 08, GRMU has traded from as high as .50 to as low as .0006 per share.

With cumulative volume of 177,443,379 shares since 4 Feb 08, I am going to make what I think is a fair guess that the OS is at least half that amount since I believe there to have been selling, but buying to match or do better. This means that the OS is probably 88,721,690 shares.

For an even worse case scenario, I am going to double that OS number and even round up to use an OS number of 200 million shares.

From their previous filings throughout the SEC, I think it’s fair to use for Expenses:
$525,689 x 4 = Expenses (Annually)
$2,102,756 = Expenses

Within the PR below, GRMU announced that they are planning on having $12 million in Revenues over a 36 month time frame. This averages out to be $4 million per year over the next 3 years in Revenues:
http://biz.yahoo.com/iw/070523/0256999.html

Revenues = $4,000,000 Per Year
Expenses = $2,102,756 per year
Outstanding Shares (OS) = 200,000,000

Revenues – Expenses = Income
Income ÷ OS = Earnings Per Share (EPS)

So now we can logically derive what could ”very possibly” be the fundamental valuation of GRMU:

$4,000,000 - $2,102,756 = Income
$1,897,244 = Income

$1,897,244 ÷ 200,000,000 = EPS
0.0094 = EPS

Now let’s use a 12 conservative PE Ratio to use as the multiple for the EPS derived above:

12 conservative PE Ratio x .0094 = .113

This means that given the information from which we publicly know, GRMU logically has the potential to ”very possibly” trade at .113 per share. If for some reason the OS and the amount for Revenues/Expenses are smaller or larger, then use this post as a framework to derive the “actual” valuation.

The above are thoughts as to how one could ”very possibly” see the current potential with GRMU from public information from the PRs/filings that have been made available to the public.

v/r
Sterling