Global Convergence Solutions (GCS)

[FORTY-8]

YES! It’s time to talk PRICES and MONEY!...


This is a long post … so if you’re mentally-challenged by reading anything more illuminating than “ASYI is going to the moon!”, then skip this and go to all the posts of that (utterly useless) nature.

But if you’re still intent on going forward here, before you do, a word to the wise; you just might want to copy this post for future reference due to the fact that ALL of my posts (of late) seem to be mysteriously disappearing. The Stuxnet virus no doubt. But lets begin nonetheless:

It’s easy enough to state (as many here have repeatedly done) that “ASYI’s going to $0.0005 by EOW”, or that “ASYI’s going to $0.03 by September”. It’s easy enough to say … but to do so is just a silly exercise in MINDLESS pumping … in that there is never any factual BASIS associated with those wild-eyed, off-the-cuff assertions.

So let’s try to be different this time, and try to studiously examine the question of exactly WHAT and WHY ASYI’s price will be WHEN the triangular double-reverse merger is made public in Global Convergence Solution’s soon-to-be-announced 8K. Please remember: WHAT, WHY and WHEN … that’s what we’re looking for.

The very best place to begin our DATA-COLLECTION ANALYSIS to answer those 3 questions is by examining that which GCS has already made public. In that regard, it has done two very wonderful things for us: (1) it has publicly indicated that it’s 2010 revenues were $2,100,000.00. See this link: http://www.inc.com/inc5000/profile/global-convergence-solutions and (2) a couple of days ago, GCS gushingly reported the following:

“Global Convergence Solutions, Inc., (GCS) a leading pioneer in inter-carrier Operational and Business Support Systems (OSS & BSS) for the worldwide telecommunications marketplace, announces milestone sales and accomplishments for the first half of 2012. GCS has set a company record in the first half of 2012, with total contracted sales nearly equaling the total of all sales in 2011. This sales performance is fueled by Software as a Service (SaaS) growth increasing exponentially, with growth rates of more than 250%compared to the first half of 2011. [b]GCS’ management team is forecasting a minimum year-over-year growth of 40%, exceeding the year-over-year growth experienced by the company from 2010 to 2011. GCS continues to experience exceptional growth, frequently exceeding our own aggressive sales forecasts,” states Neal Axelrad, CEO.”The truly (and stunningly) important information contained in the above excerpt is the CEO’s statement that his company is experiencing/forecasting “a minimum year-over-year growth of 40%”. Taken into context with the link that I provided above, this clearly means that the $2,100,000.00 of revenues earned in 2010 grew by $840,000.00 in year 2011 to equal total revenue of $2,940,000.00, and that the anticipated revenue growth for year 2012 will be (i.e., already IS) $1,176,000.00 (i.e., 40% of $2,100,000.00); which means that year 2012 revenue will, at a minimum, be $3,276,000.00 (i.e., 2,100,000.00 + $1,176,000.00).

THEREFORE (and straight from the horse’s mouth) we have a CREDIBLE revenue number that we can now use in our analysis of price discovery.

SO THEN: if we take 2012 projected revenues of $3,276,000.00 and add the $28,000.000.00 of ASYI revenues that will soon sit on GCS’s balance sheet, we immediately come to understand that (without more, including the monetary value attributed to GCS’s intellectual property, including its very valuable patents), it has 2012 initial operating revenue of $3,276,000.00 + $28,000,000.00 = $31,276,000.00.

NOW, we need an outstanding share count to divide that number into in order to find out what GCS’s initial PPS will be. Clearly, we don’t as yet have an OS number. Therefore, let’s extrapolate a RANGE for that number … using the very WORST outstanding share count … and then progressing to a more favorable one:

1. IF THE OS IS 5 BILLION SHARES; then the initial PPS would be $31,276,000.00 / 5B = $0.0062.

2. IF THE OS IS 4 BILLION SHARES; then the initial PPS would be $31,276,000.00 / 4B = $0.0078.

3. IF THE OS IS 3 BILLION SHARES; then the initial PPS would be $31,276,000.00 / 3B = $0.0104.

4. IF THE OS IS 2 ½ BILLION SHARES; then the initial PPS would be $31,276,000.00 / 2 1/2B = $0.0125.

5. IF THE OS IS 2 BILLION SHARES; then the initial PPS would be $31,276,000.00 / 2B = $0.0156.

6. IF THE OS IS 1 1/2 BILLION SHARES; then the initial PPS would be $31,276,000.00 / 1 1/2B = $0.0208.

7. IF THE OS IS 1 BILLION SHARES; then the initial PPS would be $31,276,000.00 / 1 1B = $0.0312.

Now then … after you’ve examined these 7 different pricing scenarios, please bear in mind that in order for the transaction between ASYI and GCS to be a tax-free reorganization under the tax code, GCS MUST receive at LEAST 80% of ALL of ASYI’s outstanding shares; and that every single one of those shares must be restricted for at least one year. That being the case, IT IS A MATHMATICAL IMPOSSIBILITY for the OS to be more than ONE BILLION SHARES. Applying the 80% rule, this is why:

1. IF THE OS IS 5B; then GCS must get 4B, leaving 1B in the float.
2. IF THE OS IS 4B; then GCS must get 3.2B, leaving 0.8B in the float.
3. IF THE OS IS 3B; then GCS must get 2.4B, leaving 0.6B in the float.
4. IF THE OS IS 2B; then GCS must get 1.6B, leaving 0.4B in the float.
5. IF THE OS IS 1B; then GCS must get 0.8B, leaving 0.2B in the float.

So then, we can, with great certainty, rely on the unrestricted OS being no more than 1BILLION shares. That would then mean that GCS’s INITIAL PRICE (i.e., the share price that will be ascribed to it at THE MOMENT its shares first begin to trade), will, in all likelihood, be NO LESS than $0.0312 … and that will be the actual VALUE of its stock, based on the above information that is presently in the public domain.

AND THIS RAISES A VERY INTERESTING OBSERVATION: If I am correct in forecasting an IMMEDIATE PRICE SPIKE FROM TRIPLE ZEROS TO $0.0312, then that might well begin to explain why MAXM is here to suffocate the price, and why GCS has pulled its video, and why there has been so much crass deception and relentless suppression in this trade … almost from its inception. An IMMEDIATE jump from $0.0001 to $0.0312 would represent an enormous ROI of 3,120%; an INITIAL ROI that just might make people “in the know” do all sorts of ‘freaky things’, no? And were you to couple this thought with the FACT that GCS has its hat set on an eventual Nasdaq up-list … then the “freakiness” associated with this trade can be immediately multiplied by several orders of magnitude. GLOBAL CONVERGENCE SOLUTIONS IS THE NEXT HEWLITT-PACKARD, MICROSOFT, AND APPLE, in that its software will eventually find its way into the daily operations of every serious internet carrier in existence!

That kind of thing can make a lot of folks (who are in the ‘know’) downright“freaky”.

BUY AS MUCH AS CAN OF THIS ‘STOCK OF THE DECADE’!!!!!!!!!!!!!

P.S.: We are beginning to hear from posters who no doubt have our best interest at heart wondering why GCS would ever even want to merge with ASYI if, in fact, it’s a successful company. They raise an interesting point as to why ANY private company would want to go public if it’s doing very well financially.

As you ponder that question … also ponder why APPLE, who is now sitting on $400 BILLION dollars of CASH, doesn’t just buy up its own shares and go private again? Or Google? Or Hewlitt-Packard? Or a host of other successful firms? Or, for that manner, why FaceBook decided not to remain a private company. WHAT SEEMS TO MAKE SO MANY HIGHLY-SUCCESSFUL PRIVATE COMPANIES ASPIRE TO THE NASDAQ when they don’t really need to raise capital there? The answer is a very simple one, isn’t it? These successful companies (like GCS) all understand that their founders and initial investors need a means by which they can cash-out a portion of their interests over time. They also need a mechanism by which to attract talented employees who will have a commitment to stay with the company and contribute their intellectual resources in order to make that company even stronger and more innovative. NONE OF THESE THINGS CAN BE DONE WITH STOCK HELD IN A PRIVATELY-OWNED COMPANY! No liquidity. No Price. No exit possibilities. No gifted employee taking a chance a chance on what an employer says … versus what a MARKET says. So then, let us shovel that corpse of an argument back into its grave.