GLER MUST READ DD C/O stervc GLER .16+ to .28+ Valuation from New OS…
I think before we complete this new fundamental valuation to presume where GLER could ”potentially” be justified for trading, I think we need to get the amount for the Outstanding Shares (OS) figured out since the OS is the key denominator that’s used to assess the value of a stock that’s profitable. Since Hawk is acquiring 6 profitable companies and will roll them up into GLER after acquiring them, my thoughts delivered will be on such premise. More than a couple of months back, I had posted that I believe that the new OS amount for GLER was roughly around 1,070,135,480 shares within the post I made below back on Sep 10, 2013: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=91855851
I had derived such number for being the OS back then because of taking into account that Hawk was given 214,027,096 shares of GLER that represented 20% of the OS. So then I asked myself…
214,027,096 shares equals 20% of what number (x)?
(Use the Cross Multiply Concept to Derive)
214,027,096 shares ÷ x = 20 ÷ 100 20x = 21,402,709,600 shares x = 21,402,709,600 shares ÷ 20 x = 1,070,135,480 shares
Now there’s another piece that must be added to the 1,070,135,480 shares to derive what the OS for GLER could be. According to the Form 8-K and the Share Exchange Agreement between GLER and Hawk that was filed with the SEC back on Aug 28, 2013, the OS cannot increase unless Hawk is going to have their 20% intact from the agreement after the increase. This means that if the OS increase, so does the amount of shares that Hawk owns that would still give them a 20% interest:
This means that if an S-8 was done for 250,000,000 shares, then Hawk is going to have in their position of ownership, an increase of 50,000,000 shares to represent 20% of such amount as derived below…
250,000,000 x .20 = 50,000,000 shares
This means that since the OS for GLER is going to increase by 250,000,000 shares to account for the S-8 shares and then an additional increase is required by another 50,000,000 shares to account for the agreement with Hawk for any share increases resulting with a 20% ownership for Hawk to honor the agreement. This means that a total of 300,000,000 shares need to be added to the previous amount that I had derived a few months back for being the OS. This means that the OS is somewhere in the area of…
1,070,135,480 shares + 300,000,000 shares = 1,370,135,480 shares for the OS
You will see within the post/link below that I had derived GLER potential valuations of .24 through .408 per share ranges depending upon a few variables that could vary as indicated within the post/link below: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=93646715
This was from the thought of the OS being roughly 1,070,135,480 shares. This simply means that if you are going to take into account an ”increase” of the OS to be 1,370,135,480 shares which is roughly a 30% increase by adding 300 million shares, then you must ”decrease” those valuations that I previously derived by 30% since the OS is the Key Denominator for assessing fundamental valuation. This supports the logic that the higher the OS goes, the lower the valuation drops in proportion percentage wise. This would warrant GLER having a potential fundamental valuation between…
.24 x .30 = .168 per share
Through…
.408 x .30 = .285 per share
Based upon what we know, GLER is going to be fundamentally worth somewhere in the area of .168 to .285 per share after they complete their goals of which the company is still on track for completing. So as you can see, the increase of the OS still warrants that GLER is significantly undervalued considering where GLER is trading right now.
What I decided to do with the rest of this post was to cut it short. Instead one very long post, I decided to make a series of posts to help explain what myself and other investors that are pro GLER that have been here for a while see for its potential for huge growth. I think it is better this way because there are many more new investors now than there were a few months ago. Something else to note, the $10 million in financing has been increased to $25 million from what the company has informed some investors that will be explained in one of the upcoming PRs which is why the amount of acquisitions have increased from 4 to 6 acquisitions as can be confirmed by calling the company. I will create a series of posts that links to this post as the initial post. So let’s get started!