Before reading any further to see how I’m going to explain how GLER is going to be ”fundamentally” worth anywhere from .24 to .408 per share from their growth when everything is finalized with GLER, it’s important to fully understand what the thought of Earnings is meant to us investors within the link below now that we know what is meant by the .02 that’s within the GLER filings with the SEC:
So let’s now derive just where GLER should fundamentally trade given this Earnings of .02 for GLER. It’s important for those who are new to GLER to understand that what is meant by ”when everything is finalized” is when the 4 Acquisitions are completed to be placed into Hawk and then Hawk with its 4 Acquisitions are then rolled up into GLER before the beginning of next year. So, it’s important right now to understand that GLER and Hawk are basically one in the same company.
The beauty about this is that so far, GLER, through Hawk, has already completed “1” of its ”4” acquisitions they are planning to complete.
Also very important about the .02 being the amount in Earnings is that it is the expected Earnings Per Share (EPS) for GLER when everything is finalized. This means that to determine a fair value of where GLER should be trading after everything is finalized, we must multiply that EPS with a Price to Earnings (P/E) Ratio. To understand the important consideration of the different usages of the P/E Ratio, read the post below: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170 http://www.investopedia.com/terms/p/price-earningsratio.asp
Again, the .02 is not the ”expected value” of GLER; instead the .02 indicated within their SEC filings is the EPS for ”when everything is finalized” between GLER and Hawk! So in other words, to determine a fair value of where GLER should exist to trade ”when everything is finalized” between the companies, observe below given a few variety of considerations:
First Consideration: With this first consideration, let’s simply use a ”very” conservative P/E Ratio of 12 for its Growth Multiple. This would justify a GLER Fundamental Valuation of below:
.02 EPS x 12 Conservative P/E Ratio = .24 per share
This means that GLER could be trading within the .24 per share range after everything is finalized.
Second Consideration: With this second consideration, let’s use a P/E Ratio of 19.80 as its Growth Multiple for the growth of GLER after everything is finalized since the company PR-ed acquiring a company to provide oil & gas services. Based on what has been PR-ed, it would appear that the company would exist within the Industry called Oil & Gas Equipment & Services below with the P/E Ratio of 19.80 which would justify a GLER Fundamental Valuation of below: http://biz.yahoo.com/p/124conameu.html
.02 EPS x 19.80 P/E Ratio = .396 per share
This means that GLER could be trading within the .396 per share range after everything is finalized.
Third Consideration: With this third consideration, GLER PR-ed that Hawk is acquiring a company that falls within the Industrial Food Distribution Industry below…
http://www.ifdaonline.org/About-IFDA/Who-Are-Foodservice-Distributors This largely behind the scenes industry includes more than 2,500 companies operating thousands of warehouses and massive transportation fleets. A typical broadline foodservice distributor may serve anywhere from 1,000 to 6,000 accounts from a single distribution center and offer their customers more than 10,000 items to meet specific operator needs. In 2012, estimated distributor annual sales in North America exceeded $200 billion. --------------------------------------------------------------------------------
This justifies the use of a P/E Ratio of 20.40 as its Growth Multiple for the growth of GLER after everything is finalized since the company PR-ed Hawk is acquiring a company within the Industrial Food Distribution realm. Based on what has been PR-ed, it would appear that the company would exist within the Industry called Food Wholesale below with the P/E Ratio of 20.40 based on some other companies that I researched within the Industry which would justify a GLER Fundamental Valuation of below: http://biz.yahoo.com/p/757conameu.html
This would justify a GLER Fundamental Valuation of below:
.02 EPS x 20.40 P/E Ratio = .408 per share
This means that GLER could be trading within the .408 per share range after everything is finalized.
Fourth Consideration: With this fourth consideration, let’s use an average P/E Ratio of the ones we used above to derive an averaged GLER Fundamental Valuation between the above valuations to justify GLER having growth from all of the above mentioned Industries which would justify a GLER Fundamental Valuation of below:
(.24 + .396 + .408) ÷ 3 = .348 per share
This means that GLER could be trading within the .348 per share range after everything is finalized.
This means that any share price of GLER that is ”significantly” below any of the above levels, could prove that GLER is ”significantly” undervalued. I think now is even more important to reiterate something that I had posted at the beginning portion of this post:
The beauty about this is that so far, GLER, through Hawk, has already completed “1” of its ”4” acquisitions they are planning to complete.
So, technically speaking, since “1” of its ”4” acquisitions have been completed, GLER could be worth ¼ of that above Fundamental Valuation mentioned above which justifies a GLER Fundamental Valuation of below:
.348 ÷ 4 = .087 per share
This means that GLER could be trading within the .087 per share right now as more and more of the market learn of what’s transpiring here with GLER.
Now let’s recap much about Trump Equipment Company (TEC) as this is the first “1” of ”4” acquisitions that have been completed. The Form 8-K recently filed with the SEC of the GLER acquisition of Trump Equipment Company (TEC) through Hawk Manufacturing, confirms that the deal is very real and legit along with some other things that are very important that is always worth another read: http://www.sec.gov/Archives/edgar/data/1121901/000109181813000404/0001091818-13-000404-index.htm
This PR below was filed with the SEC along with their 8-K confirms that the acquired 65% of TEC adds the value and growth below to GLER/Hawk as filed:
http://www.sec.gov/Archives/edgar/data/1121901/000109181813000404/ex991.htm ...The acquisition of Trump Equipment will add 48 full-time employees to Hawk Manufacturing. The acquisition will also add more than $15 million in annual revenues and EBITA of more than $2 million to Hawk Manufacturing. ... --------------------------------------------------------------------------------
I can’t stress this enough that the beauty about GLER/Hawk is something that the market (for now) has not acknowledged about this stock. With all of the other stocks that Investors like and are trading/investing in, almost all of them are under the thought of ”speculating” where that stock should trade if a certain amount of Revenue and Income is generated with the ”Ultimate Goal” to one day achieve being ”profitable” within the market. This one acquisition of TEC makes GLER/Hawk immediately ”profitable” and will be coming even more ”profitable” with their additional three acquisitions in the queue to be added.
Finally too, as a worst case scenario, 65% of TEC was acquired by Hawk which means that a consideration of 65% of the above valuations could be considered although they could be completed to 100% by the time everything is finalized.
Now that we have a better understanding of just what that .02 represents that was filed by GLER within their SEC filings, now we should read the post below as their ”first” of ”four” acquisitions should now make even more sense to us all: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=92496377