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Re: Brain post# 48755

Tuesday, 12/14/2010 11:01:57 PM

Tuesday, December 14, 2010 11:01:57 PM

Post# of 371919
TDGI Liquidation Value (ONLY)



Wow. everyone here seems very confident that the PPS will be at .06+ even before the meeting or audit is released.
That's a very bold statement to make.




Not really, it is just simple math.

First, let me point out one simple fact. This is the penny market, where stocks can become undervalued and undervalued by large margins. We have crap stocks that dilute, Reverse split their shareholders into oblivion, yet the stock can run up into the 1,000's percent. Then you can have a reputable company with a No Dilution Policy, that has been around for 8 years and building a business based on Revenue and Earnings, stuck in the .02's.

This may seem annoying at first, but does provide a chance for huge profits.


TDGI LIQUIDATION VALUE

TDGI owns a Video Properties Library and Equipment that they valued at about $23 Million. OK, let us be very conservative and say the Library is only worth $15 Million.

15M / 462 M Shares = $0.032 Per Share

So, the TDGI Liquidation Value is .032

What does this mean in plain English? Well first, 98% of Pinksheets do not even have Revenue or Profits, let alone a Liquidation Value. This fact alone puts TDGI in the top 2% Tier of all Pinksheets.

Liquidation Value is the value of TDGI shares IF the company went out of business tomorrow. Simply, TDGI could theoretically sell the Library for .032 per share. TDGI investors would be compensated that amount. This is the worst that could happen to investors.

For a month or two, TDGI stock was at .02, but the lowest value (Liquidation Value) was .032. TDGI has been severely undervalued. If the true Library Value is .032 there is an Arbitrage Opportunity for investors, because over time stocks always reflect their true value.

NOTE: This TDGI Valuation is for Liquidation Value only, it does not consider a whole myriad of Revenue and Profits opportunities for TDGI. These values would have to be added in addition to the .032.


In Conclusion, TDGI has been severely undervalued, and right now is only getting back to fair value based on Liquidation Value ONLY.



P.S.
Food for thought. The TDGI Library at time of valuation had under 150 Video Properties. TDGI issued a PR a few months ago stating they were looking to expand the Library to 600 or 700 Properties. What would the 2011 Library Valuation look like in that case? Kind of makes you go HMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM.


TDGI - DECEMBER TO REMEMBER


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