California Grapes International, Inc (CAGR)

[PhilCheeze]

OH you betcha there will most certainly be a
rally from the mandatory certificate exchange
that is going to cause severe financial pain
for the criminals who have naked shorted this
stock into olibivion. And, now that their goal
of not having to cover by causing a Bankruptcy
failed, each and every share they have FTD'd
will be covered by the mandatory buy-in, Period!

Now, that being said, the company is as you know
merging with a private company that is cash flow
positive. This particular company has likely revenues
in the $2M-$4M range for FY11, possibly $8M-$12M for FY2012.

To be conservative, lets say they turn a $1M profit for
FY2011, and $4M for FY2012.

Outstanding Shares likely are at 3.8B pre-split and now
only 380M post split. This means that with only a measly
$1M profit for FY11, the eps is 0.0026 post split.
Using a conservative PE of 10, we get 0.0026 x 10 = 2.6 cents
in PPS valuation. If valuation goes to the forward PE
and FY2012 profits, then we can calculate the PPS at 10.4 cents.

Now, if the company does the 1:10 reverse at say 0.0003, the
new share price would be at 0.003 and that would mean the stock
would be trading at nearly its EPS, or a PE ratio of 1 (ONE). LOL.

Although, we are getting a short squeeze and it will be
the deathblow to the miscreant short sellers that lost the
battle for GDHI. IT DOESNT MATTER EITHER!

R/M VALUATION ALONE will have this stock trading at 2.6 to 5 cents!!

Now, will I sell shares to the shorts on the short squeeze,
YES. Will I sell them for lower than 2.6 cents per share, NO!

Good luck to you and your friends, you will need it!