The numbers that Arbpro has put together are spot on for an established company with a stable history of revenues. As financials are released with such a company it can affect the stock up or down depending on the numbers and the outlook going forward. This is obviously not the case with GLEC. GLEC is a startup company with as history of failed startup attempts.
An example of how the stock will react with news of an actual sale of CC's with an actual amount of revenue, and this is only an example, is kind of like how the stock reacts to a Pharmaceutical company whose latest drug trial has been reported as successful or better yet has gotten FDA approved. Though actual revenues have not been determined, the speculation drives the PPS up tremendously.
GLEC has an example of its own on how speculation can drive a stock's price up with no actual revenue coming in. When they had that deal announced in Mexico, they only had projected possible revenues and the stock went up to somewhere around 60-70 cents. This was based solely on the possibility of money coming in. In the case of the CC's sales for Castleberry, it would not only be the release of how much they could get per CC but the actual sale of the CC's as well as the future projects already in the works, that will drive the PPS up. How high and how long it stays there is the unknown. That will depend on how many people are actually waiting for that to happen to jump in. If it is based solely on the existing shareholders buying more to drive the price up, it won't go far at all.
As far as what earnings will be based on the CC revenue is concerned. It should be very close to the same exact number. There is no real cost to the production or creation of CC's. Yes, there is a cost to the production of the compost but the sale of the compost should easily cover any cost to produce it. Even if sold at cost it is obviously covered. Sure there is the initial costs to the applications and appraisals and such but nowhere near the 80% stated here.
NML brought up the one point that could be the kink in the armor here. Are GECO's revenues legally tied to GLEC and thus the interest of the shareholders. I believe they are.
A done CC deal with good numbers from being on the Gold Exchange, plus other projects in the works, coupled with a lot of interest from those other than we current shareholders, should equal to a solid payday for those who have held on for so long.
AI
