Smelly, I think the whole "banned" crew is here to
Post# of 11038
CRGP .20+ Actual Fundamental Valuation to Consider
Usually whenever I create a fundamental valuation post, it is derived from speculation predicated upon the ”potential” that exists of a company to becoming profitable upon executing their business objectives.
However, here with CRGP, this fundamental valuation will not be based upon its ”potential” revenues for being profitable, but instead will be based upon its ”actual” revenues that have been generated to a level to where CRGP is profitable. This means that this valuation will lean more towards being ”factual” versus ”speculation” based on what has been filed within the company’s financials. Let’s further observe some ”Key Variables” within the Annual Report and the last two Quarterly Reports to include its most recent Quarterly Report filed on Aug 19, 2015 to show the consistency of sustained growth.
For the year ending Dec 31, 2014, CRGP reported the following key variables to consider:
http://www.otcmarkets.com/financialReportView...;id=135644
Assets = $19,908,111
Liabilities = $7,105,629
Equity = $12,802,482
Revenues = $15,693,666
Expenses = $7,248,635 + $669,512
Net Income = $7,775,519
For the quarter ending Mar 31, 2015, CRGP reported the following key variables to consider:
http://www.otcmarkets.com/financialReportView...;id=138139
Assets = $19,650,272
Liabilities = $4,711,927
Equity = $14,938,345
Revenues = $5,035,867
Expenses = $2,711,621 + 194,383
Net Income = $2,129,863
For the quarter ending Jun 30, 2015, CRGP reported the following key variables to consider:
http://www.otcmarkets.com/financialReportView...;id=143463
Assets = $21,080,227
Liabilities = $4,688,677
Equity = $18,193,345
Revenues = $8,907,600
Expenses = $4,809,105 + 283,200
Net Income = $3,815,295
Net Income (Profit) Margin = $3,815,295 ÷ $8,907,600 = 42.8%
The beauty about CRGP is that the company has reflected consistent growth as can be confirmed from the key variables within its Annual and Quarterly Reports above. Now let’s derive an annual fundamental valuation considering that the San Pedro Mine has recently been sold from the quarterly revenues above and by considering the quarter to quarter growth for this year of 2015. This means that to get an ”actual” fundamental valuation, we must consider only the revenues of the remaining Jovita Mine going forward for now.
http://www.otcmarkets.com/financialReportView...;id=138139
$3,147,417 = Jovita Mine for the quarter ending Mar 31, 2015
($2,580,882 + 566,535)
http://www.otcmarkets.com/financialReportView...;id=143463
$6,180,200 = Jovita Mine for the quarter ending Jun 30, 2015
($5,344,560 + 835,640)
Now let’s derive an annual amount considering only the revenues from the Jovita Mine and considering that the revenues only remain constant/consistent even though thus far the revenues have been exponentially growing at a doubling rate per quarter for 2015.
$6,180,200 x 4 Qtrs = $24,720,800
$24,720,800 x .428 Net Profit Margin = $10,580,502 Net Income
The Outstanding Shares (OS) is the key fundamental denominator that is used to assess the fundamental valuation of a company to help derive the Earnings Per Share (EPS) for a company. To derive an EPS for CRGP, we must know the OS and the Net Income amounts. The last reported number for the OS was 242,823,237 shares within the Aug 13, 2015 PR below:
http://www.otcmarkets.com/stock/CRGP/news/Cal...33&b=y
As a ”worst case scenario” for the OS, let’s consider the OS to be roughly 3 times that amount and round the OS to being 750,000,000 shares for the purpose of this post since the announcement above. Please use the Substitution Property to substitute out any variable that might change later in the future such as the amount of Net Income or particularly the amount for the OS if it is higher or lower than the number I’m considering for the purpose of this post.
CRGP is on schedule to generate at least $10,580,502 in Net Income over the next four quarters. This gives us logic to derive a valuation from the related formulas indicated below:
Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)
So…
$10,580,502 Net Income ÷ 750,000,000 shares (OS Worst Case) = .0141 EPS
To determine where a stock should fundamentally trade, multiply the EPS with the Price to Earnings (P/E) Ratio. For inquiring minds, the P/E Ratio is basically the ”Growth Rate” for a group of similar stocks within a particular Sector or Industry for where a stock would be classified to exist/trade. As that stock exists within that particular Sector or Industry, it is expected to grow at the same rate as such like stocks within that Sector or Industry. For those new for understanding what a P/E Ratio is, read the links below that hopefully will help: