Post by fastwalker on Oct 16, 2004 19:33:25 GMT -5
:)FYI..FWIW..Commentary...
By: stervc
16 Oct 2004, 07:03 PM EDT
Msg. 100179 of 100189
(This msg. is a reply to 100014 by golfer28409.)
Jump to msg. #
Golfer, about Pedro's SGGM post...
I think that he and Cris had done an outstanding job. I would have done such a little different, but I like theirs better than the way I would have done such. Thanks for sharing.
I would have left out the accounting information only from not immediately thinking about such details. My rational would have reflected prices that would have been considered over inflated by some because I would have attacked it from the perspective of assuming the $68 Billion figure is 5% of the total valuation of CMKX which would have equated to using a figure of $1.36 Trillion. Their thoughts are better and more conservative which is better for our current CMKX atmosphere for this environment.
I think they are saying that on the Balance Sheet the price value would reflect under the column of Equity which is used to derive the Book Value:
Assets - Liabilities = Equity
then,
Equity ÷ Outstanding Shares = Book Value
We would have needed for such to be reflected as Revenues from an operational standpoint on the Balance Sheet and not Equity to best provide Fundamental Valuation that major investors are in search of to invest in my opinion.
Revenues - Expenses = Income (Profit)
then,
Income ÷ Outstanding Shares = Earnings Per Share (EPS)
then,
EPS x PE Ratio = Expected Price Per Share
Still, they are correct in that revealing such as Equity would reflect as a major accomplishment, especially on our Balance Sheet, etc.
I do see some mixed thoughts as to how under the GAAP standards that some of that value could be considered Revenues which is how it would benefit us to have SGGM trading under CMKX as a subsidiary. I think this is where they are referring to the $64 Billion Credit Deferred Revenue (Unrealized Capital Gain) as Revenues reflected on the Balance Sheet. This would be how we would need for SGGM to be reflected on our Balance Sheet as supporting our Revenue from operations.
Since I was and still am not sure as to how it will be reflected, I maintained the belief that Urban will give us the shares of SGGM as a dividend and/or possibly use SGGM in the form of a double merger with CMKX and CIM instead of having SGGM trade as a subsidiary under CMKX. Any of these thoughts would be awesome for us as shareholders if these thoughts are to be correct for use in these manners! Please read this post to see an option as to how the mergers between CMKX, SGGM, and CIM could materialize in an older post on 16 Sep 04:
www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=82017
Below is a post I responded to GeorgeBurns on to show how I think that giving us SGGM as a dividend could make many of us millionaires by giving us equity in a different form. Please pay particular attention to the response reflection towards the end to show how 50 million shares of CMKX would bring you $6,250,000 in equity when SSGM is at .50 cents. I will show such again immediately following the link for immediate consideration:
www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=92033
The thought is that you have 50 Million shares of CMKX and Urban decides to give us the 200 Billion shares of SGGM as another stock dividend at a price when SGGM is trading at .50 cents. Even if the OS has been maximized out to being 800 Billion shares then that would give us a ratio 1:4 for receiving 1 share of SGGM for every 4 shares of CMKX owned with an end result of value in our accounts of $6.25 Million from the logic below:
50,000,000 ÷ 4 = 12,500,000 shares
If SGGM trades at .50 cents then that would have sitting in the account:
12,500,000 x .50 = $6,250,000
These are only some thoughts to add to your thoughts as to what can happen in my opinion. I know I steady spun off on a little tangent, but back to the topic at hand.
Most stocks normally trade from its EPS derivation and not its Book Value derivation for assessing Fundamental Valuation for a share price. Still both are important for reflection in the Balance Sheets to show valuation in their own ways.
I have always respected thoughts by Pedro before he stopped posting over here from a situation which I believe was nothing more than miscommunication blown out of proportion for his removal. I do hope that one day we can reconcile as we are still on the same team. Hopefully we can act together as we are imperfect men and forgive each other to put our differences behind us to get back to CMKX. It appears that we both do believe that SGGM will be the sleeping giant that gets us to where we want to be as CMKX shareholders. The above are only my opinions. Again, thanks for sharing his thoughts.
All is well!
www.sterlingsclass.com/
;-)
Sterling
By: stervc
16 Oct 2004, 07:03 PM EDT
Msg. 100179 of 100189
(This msg. is a reply to 100014 by golfer28409.)
Jump to msg. #
Golfer, about Pedro's SGGM post...
I think that he and Cris had done an outstanding job. I would have done such a little different, but I like theirs better than the way I would have done such. Thanks for sharing.
I would have left out the accounting information only from not immediately thinking about such details. My rational would have reflected prices that would have been considered over inflated by some because I would have attacked it from the perspective of assuming the $68 Billion figure is 5% of the total valuation of CMKX which would have equated to using a figure of $1.36 Trillion. Their thoughts are better and more conservative which is better for our current CMKX atmosphere for this environment.
I think they are saying that on the Balance Sheet the price value would reflect under the column of Equity which is used to derive the Book Value:
Assets - Liabilities = Equity
then,
Equity ÷ Outstanding Shares = Book Value
We would have needed for such to be reflected as Revenues from an operational standpoint on the Balance Sheet and not Equity to best provide Fundamental Valuation that major investors are in search of to invest in my opinion.
Revenues - Expenses = Income (Profit)
then,
Income ÷ Outstanding Shares = Earnings Per Share (EPS)
then,
EPS x PE Ratio = Expected Price Per Share
Still, they are correct in that revealing such as Equity would reflect as a major accomplishment, especially on our Balance Sheet, etc.
I do see some mixed thoughts as to how under the GAAP standards that some of that value could be considered Revenues which is how it would benefit us to have SGGM trading under CMKX as a subsidiary. I think this is where they are referring to the $64 Billion Credit Deferred Revenue (Unrealized Capital Gain) as Revenues reflected on the Balance Sheet. This would be how we would need for SGGM to be reflected on our Balance Sheet as supporting our Revenue from operations.
Since I was and still am not sure as to how it will be reflected, I maintained the belief that Urban will give us the shares of SGGM as a dividend and/or possibly use SGGM in the form of a double merger with CMKX and CIM instead of having SGGM trade as a subsidiary under CMKX. Any of these thoughts would be awesome for us as shareholders if these thoughts are to be correct for use in these manners! Please read this post to see an option as to how the mergers between CMKX, SGGM, and CIM could materialize in an older post on 16 Sep 04:
www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=82017
Below is a post I responded to GeorgeBurns on to show how I think that giving us SGGM as a dividend could make many of us millionaires by giving us equity in a different form. Please pay particular attention to the response reflection towards the end to show how 50 million shares of CMKX would bring you $6,250,000 in equity when SSGM is at .50 cents. I will show such again immediately following the link for immediate consideration:
www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=92033
The thought is that you have 50 Million shares of CMKX and Urban decides to give us the 200 Billion shares of SGGM as another stock dividend at a price when SGGM is trading at .50 cents. Even if the OS has been maximized out to being 800 Billion shares then that would give us a ratio 1:4 for receiving 1 share of SGGM for every 4 shares of CMKX owned with an end result of value in our accounts of $6.25 Million from the logic below:
50,000,000 ÷ 4 = 12,500,000 shares
If SGGM trades at .50 cents then that would have sitting in the account:
12,500,000 x .50 = $6,250,000
These are only some thoughts to add to your thoughts as to what can happen in my opinion. I know I steady spun off on a little tangent, but back to the topic at hand.
Most stocks normally trade from its EPS derivation and not its Book Value derivation for assessing Fundamental Valuation for a share price. Still both are important for reflection in the Balance Sheets to show valuation in their own ways.
I have always respected thoughts by Pedro before he stopped posting over here from a situation which I believe was nothing more than miscommunication blown out of proportion for his removal. I do hope that one day we can reconcile as we are still on the same team. Hopefully we can act together as we are imperfect men and forgive each other to put our differences behind us to get back to CMKX. It appears that we both do believe that SGGM will be the sleeping giant that gets us to where we want to be as CMKX shareholders. The above are only my opinions. Again, thanks for sharing his thoughts.
All is well!
www.sterlingsclass.com/
;-)
Sterling