MediaG3 (MDGC)

[Stock_Nerd]

MDGC: Book Value Per Common Share

In my opinion, MDGC's price per share is considerably undervalued even when only considering current book value.

Book Value Per Common Share indicates the dollar value remaining for common shareholders after all assets are liquidated and all debtors are paid, should the company decide to dissolve.

Book Value Per Share = (Total Shareholder Equity – Preferred Equity) / (Total Outstanding Shares)

Some calculations for consideration:

1. Since the determination of the media credits valuation is not provided, exclude the prepaid expenses (media credits) of $10,000,000 from the company's total assets.

Book Value Per Share = (Total Shareholder Equity – Preferred Equity) / (Total Outstanding Shares)
Total Shareholder Equity = (Total Assets – Media Credits) – Total Liabilities = ($23,079,534 - $10,000,000) - $3,759,439 = $9,320,095
Preferred Equity = Preferred Shareholder Equity = 0 (No preferred shares issued)
Total Outstanding Shares = 1,252,247,882
Book Value Per Share (excluding media credits) = ($9,320,095–$0) / (1,252,247,882) = $0.0074 per share

2. The same calculation with the media credits included in the total assets:

Total Shareholder Equity = Total Assets – Total Liabilities = $23,079,534 - $3,759,439 = $19,320,095
Preferred Equity = Preferred Shareholder Equity = 0 (No preferred shares issued)
Total Outstanding Shares = 1,252,247,882
Book Value Per Share (including media credits) = ($19,320,095 –$0) / (1,252,247,882) = $0.0154 per share

Note: Numbers were obtained from company’s quarterly report dated March 31, 2011. www.pinksheets.com

Disclaimer: The above is my opinion. I am not an accountant or an investment adviser. I encourage everyone to perform their own due diligence and make their investing decisions accordingly.

GLTA!
Stock_Nerd